Travelodge thanks Taylor Swift for revenue rise

The chief executive of hotel group Travelodge has pinned a rise in revenue on factors including staycation demand, the return of in-person meetings and Taylor Swift’s Eras tour.   In results for the six months to 30 June, the company said revenue rose by 1.7% year-on-year to £486.7m, although the bottom line was hit by “significant investments to drive growth” as well as inflationary pressures and acquisition costs.  Chief executive Jo Boydell said: “Travelodge Group delivered a first-half performance in line with expectations, with our financial performance reflecting our continued investment in the business to drive growth and quality, including freehold acquisitions, as well as inflationary cost pressures and softer market demand, particularly in London. “Revenue growth was supported by resilient customer demand from both leisure and business guests, with encouraging trends including continuing staycation demand, more people working in offices again and more face-to-face meetings.” Boydell added: “Events during the period were below 2023 levels, and included music concerts such as Take That, Pink and the first UK dates of Taylor Swift’s Eras Tour, as well as sporting events such as the Cheltenham Festival, Six Nations Rugby and the Grand National, and business trade fairs such as International Confex, a two-day gathering for event organisers, and ICE London, the gaming showcase event.” The company has bought 66 Travelodge-branded hotels on a freehold basis from LXi REIT and so far this year has opened five new hotels.  “UK revenues in the third quarter to date are modestly below 2023 levels but we were encouraged by improving trends during July, with UK revenues ahead of 2023 in that month,” Boydell said. “Forward bookings are also positive, with booked revenue to the end of the year ahead of 2023 levels at this point, driven by strong event demand. Our strong financial position, combined with our affordable proposition and diversified, increasingly well invested hotel network, position us well for long-term growth.” Photo © Jeff Spicer/PA Wire