The 558-strong hotel brand Travelodge has reported a 6.6% increase in revenue to £637.1m due to the launch of SuperRooms, the company's premium economy concept.
For the year-end 31 December 2017, EBITDA was up £2.3m to £112.4m, revenue per available room (revpar) was up 2.9% to £40.49 (2016: £39.37), average room rate was up 2.8% to £53.19 and occupancy was maintained at 76.1%.
The chain also opened 15 new hotels during the period, including new sites at London Harrow, Bath city centre, Redhill town centre and Newcastle Quayside. In 2018 it plans to open 20 hotels, including a 395-room London City hotel in the summer.
Peter Gowers (pictured), Travelodge chief executive, credited the growth to "sales from business customers, boosted by SuperRooms", which has helped the company "mitigate the significant macroeconomic and external cost pressures facing the sector".
He continued: "Over the last four years we have strengthened Travelodge considerably. We have upgraded our estate, opened over 50 new hotels, launched our new SuperRooms and now have more than 170 hotels with on-site bar cafés. While we are not immune to the cost headwinds facing many UK leisure and hospitality businesses, with strong underlying demand for budget hotels and a healthy secure pipeline of new hotels to open, we will be well-positioned once the current cost pressures abate."
The SuperRooms concept launched in early 2017 and there are now 990 across the UK. The rooms are aimed specifically at customers who want a more premium offering and they include Lavazza coffee pod machines, Hansgrohe rain showers, blackout curtains and obtain an average rate premium of £10-£20 over standard rooms.
A further 400 SuperRooms are to be rolled out in 2018 in seven more Travelodge hotels in London, Bristol, Edinburgh, Manchester and York.
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