Travelodge boss: ‘Government does not understand the economic value that our sector delivers’

The boss of Travelodge has urged government to extend its pub-style relief across the hospitality sector and to better “address the needs of hotels” in its upcoming business rates review.

Chief executive Jo Boydell’s comments come fresh off the back of the Treasury’s long-awaited announcement on business rates relief, in which it was confirmed only pubs and live music venues across England will receive a 15% discount on their business rates bill and see their rates frozen for the next two years.

Travelodge estimated the upcoming business rates revaluation from April 2026 will increase costs from £38m in 2025 to £50m in 2026, with further “significant rises” anticipated from the phasing out of transitional relief over the next three years.

The group also admitted the increased cost pressures will likely lead to “a more measured pace of growth in the UK market in the near term”.

Writing in response to the budget hotel group’s Q4 2025 results published today (28 January), Boydell criticised the “cumulative impact” of recent government policy around higher business rates, rising employment costs and new regulatory requirements that have made the operating environment “more challenging”.

Boydell said: “Higher rates and a lack of bespoke support, together with wider regulatory cost increases sends the message that the government does not understand the economic value that our sector delivers.

“We urge the government to listen and extend pub-style relief to hotels, re-balance the retail, hospitality and leisure discount, and ensure transitional measures genuinely ease the impact of revaluation for larger hospitality businesses. The upcoming business rates review must address the needs of hotels to support long-term investment, skills and growth – both nationwide and for local communities.”

Travelodge posted a 0.7% increase in group revenue for the year, with figures rising to £1.044b, up from £1.037b the prior year, while revpar (revenue per available room) for the period fell 1.9% to £57, which the group attributed to “the refit programme and regional mix”.

The budget brand delivered a strong fourth quarter, with revenue up 4.3% to £261m, supported by major leisure events such as the World Travel Market in London, European football fixtures and Christmas markets.

Over the course of 2025, the hotel group also embarked on its largest development programme in over a decade, opening 21 new hotels across the UK under both leasehold and freehold models.

Further pipeline deals have also been signed across the UK and Spain and the hotel brand projected capital expenditure for 2026 to be around £100m, with just under half allocated to discretionary refit investments, alongside new hotel development, technology and essential maintenance.

Travelodge Group was founded in 1985 as Britain’s first budget hotel chain and today operates 625 hotels and approximately 49,000 bedrooms across the UK, Ireland and Spain.