Travelodge has reported a record full-year result, with turnover exceeding £1 billion for the first time due to strong business and leisure demand.
In its financial report for the year ending 31 December 2023, the budget hotel chain reported a significant 14.6% increase in earnings before interest, tax, depreciation and amortization (EBITDA), with figures rising from £212.9m to £243.9m.
The company experienced record days and weeks of trading during Eurovision and Wimbledon, resulting in the group’s highest ever revenue in London and what was dubbed “Travelodge’s biggest event of the year”.
Demand has remained strong in the first quarter of 2024, and accommodation sales have increased by approximately 2% from 2023 levels.
The announcement comes as the group bought 66 Travelodge-branded hotels from Travelodge’s biggest landlord LXi REIT for £210m in February, backed by its owner GoldenTree Asset Management.
During the financial year, Travelodge expanded its portfolio by opening four hotels, including its first property in Spain in over a decade. The company has announced plans to open six new properties in the UK in 2024.
The group has identified over 300 potential sites across the UK for future expansion. There are plans to open around 15-20 properties each year.
Jo Boydell, chief executive of Travelodge, said: “Travelodge is well positioned in the budget hotel sector and enjoys strong demand from our diverse range of leisure and business customers looking to stay with us for quality, affordable accommodation. We continue to invest in strengthening our brand proposition and driving future growth.
“While we are mindful of the challenging macroeconomic backdrop, including continued cost inflation, we will continue to invest in the long-term future of the business, including accelerating our refurbishment program and opportunities to open new hotels in both the UK and Spain.’
Founded in 1985, Travelodge has grown to nearly 600 hotels and employs over 13,000 people.
