Travelodge revenue exceeds £1b for the first time

Travelodge has reported record full-year results, with revenue exceeding £1b for the first time due to strong demand from business and leisure.

In its results for the year ended 31 December 2023, the budget hotel group boasted a 14.6% boost in earnings before interest, taxes, depreciation and amortisation (EBITDA), with figures rising from £212.9m to £243.9m.

The company experienced record-breaking trading days and weeks during Eurovision and Wimbledon, which led to the group's highest ever revenue in London and was dubbed "Travelodge's biggest event of the year".

Demand has continued into the first quarter of 2024, with accommodation sales approximately 2% ahead of 2023 levels.

It comes after the group completed its acquisition of 66 Travelodge-branded hotels from Travelodge's largest landlord, LXi REIT, for £210m in February with support from its owner, GoldenTree Asset Management.

Travelodge opened four hotels during the financial year, including its first hotel in Spain in over 10 years, and has revealed plans to open six more UK properties in 2024.

The group also identified over 300 target locations in the UK, with yearly openings set to rise to the region of 15 to 20.

Jo Boydell, chief executive of Travelodge, said: "Travelodge is well-positioned in the budget hotel sector, with robust demand from our diverse mix of leisure and business customers who choose to stay with us for quality, affordable accommodation. We continue to invest in strengthening our brand proposition and driving future growth.

"While we remain mindful of the challenging macroeconomic backdrop, including ongoing cost inflation, we are continuing to invest in the long-term future of the business, including the acceleration of our refit programme and exploring opportunities to open new hotels in both the UK and Spain."

Travelodge was founded in 1985 and has grown its portfolio to nearly 600 hotels and more than 13,000 employees.