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.
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