Travelodge returns to the black with pre-tax profit of £5.9m
Budget hotel group Travelodge has reported a record-breaking set of financial results, with annual turnover increasing 12.6% to £559.6m.
Meanwhile, operating profit for the group, which owns, leases, franchises and manages more than 525 hotels in the UK, Ireland and Spain, more than doubled from £30.3m in 2014 to £62.9m last year.
Earnings before interest, taxes, depreciation, amortisation, exceptional items and IFRS rent charge (EBITDA) was up 58.8% to £105.1m - the highest in Travelodge's 30 year history.
The improved financial performance was driven by buoyant operating figures, with an increase in occupancy by one percentage point to 76.6%, revenue per available room up 11.7% to £38.44 and average room rate up 10.2% to £50.19.
The company's strategic report stated: "Our investment in the customer experience is delivering excellent results and our new-look rooms are driving substantial improvements in guest satisfaction."
Travelodge recently completed a £100m modernisation programme, featuring the brand's new look and king-size Dreamer bed in every bedroom.
Travelodge's latest financial figures mark a turnaround for the company, which came close to collapse with debts of more than £1b in 2012, when it was acquired from Dubai International Capital by American hedge funds Avenue Capital and GoldenTree Asset Management in partnership with US bank Goldman Sachs.
The trio of businesses secured the future of the company by initiating a debt-for-equity swap and company voluntary arrangement.
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