Travelodge to open 100 hotels in next five years as revenue grows

18 March 2019 by
Travelodge to open 100 hotels in next five years as revenue grows

Travelodge has said it plans to open 100 more hotels in the next five years after recording revenue growth of 8.8% in 2018.

Revenue reached £693.3m, with RevPAR up 3.2% to £41.69 and occupancy at 78.5%. EBITDA increased by £9.6m reaching £122m.

Peter Gowers, Travelodge chief executive, said: "Our strategic focus on location, price and quality has enabled Travelodge to deliver a set of excellent results. We extended our network of hotels, remained focused on delivering attractive prices and took another step forward on quality.

"Once again we outperformed our competitive segment and delivered another year of strong growth, with EBITDA up £9.6m to £122m. These are uncertain times and we are not immune from the short-term challenges, but beyond, we remain confident that there are more opportunities ahead."

Travelodge opened 17 hotels in the year, bringing its portfolio to 575 properties with 43,840 rooms. Three more hotel openings are in the immediate pipeline.

Gowers said the group had outperformed the segment for five years in a row, trebling its profitability. This growth has offset cost increases, particularly the National Living Wage, business rates and the expenses associated with improved occupancy.

The openings are expected to create 3,000 jobs. Travelodge has ended its practise of out-sourcing housekeeping and abolished the use of zero-hour contracts.

Man, 35, arrested after digger driven into Liverpool Travelodge>>

Get The Caterer every week on your smartphone, tablet, or even in good old-fashioned hard copy (or all three!).
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking