Significant growth from businesses customers has helped Travelodge achieve underlying earnings in excess of £100m for the first time in the history of the group of 526 budget hotels in the UK, Ireland and Spain.
According to the company's trading statement for the year ended 31 December 2015, the group reported a 13% increase in total revenue to £558m. Occupancy was up one percentage point to 76.6%, while revenue per available room and average room rate rose 11.7% to £38.44 and 10.2% to £50.19 respectively.
The results follow the completion of a £100m, three-year renovation programme of the Travelodge portfolio, during which almost 35,000 rooms were updated and new king-sized beds installed.
Peter Gowers, chief executive of Travelodge, said the group had continued to outperform its market segment in the first weeks of 2016. "There continues to be strong underlying growth potential for value hotels. We have identified 250 further potential UK locations for new hotels and with our strong brand, direct distribution model and growing development pipeline, the board believes the company is well positioned to continue to deliver substantial further growth in the years ahead."
Travelodge, which welcomed a record 18 million guests in 2015, plans to open a further 19 hotels this year, up from the 12 properties it launched last year.
Caption: Peter Gowers with the Travelodgical characters from the group's recent TV advertising campaign