Travelodge on target to become largest London hotelier

24 April 2007 by
Travelodge on target to become largest London hotelier

Budget hotel group, Travelodge was behind one in three of the UK's hotel openings last year and is on target to become the largest hotelier in London by 2012.

The group, which has seen internet sales increase 63% to equal 83% of all bookings, saw earnings before interest, tax, depreciation and amortisation (EBITDA) grow 19% to £46.2m for the year ended 31 December 2006.

Revenues increased by 17% year-on-year to £203.5m with room occupancy rising by four percentage points to 78%.

Chief executive Grant Hearn said: "With a 15% increase in our estate last year and adding a further 3,000 rooms to our stock this year we will now be focussing on maintaining this level of occupancy."

He added that the group's low-cost policy and approachable ambience was bringing in new customers, who had not stayed in hotels before. "We are focussed on growing the overall market by increasing the customer base."

In 2006, the group opened 27 new hotels and sold one million rooms at £26 or less.

The launch of its new travel insurance product was, according to Hearn, "already exceeding expectations," and could lead to other products being brought to the market.

Hearn is due to meet Tourism minister Shaun Woodward in the next fortnight to discuss the growing £18b UK tourism deficit.

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By Emily Manson

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