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Travelodge has reported a 6.6% increase in revenue to £637.1m, outperforming the STR MSE segment by 0.7%.
The group attributed the growth to the launch of the a premium economy concept, ‘SuperRooms’.
For the year-end 31 December 2017 RevPAR was also up 2.9% to £40.49 (2016: £39.37), average room rate was up 2.8% to £53.19 and occupancy was maintained at 76.1%.
The chain, which as of December 2017 had 558 hotels and 42,110 rooms on offer, also saw EBITDA rise £2.3m to £112.4m.
Peter Gowers, chief executive said: “Our continued focus on quality and service is delivering good results. Rising sales from business customers, boosted by our new SuperRooms, helped drive strong sales growth, with like-for-like RevPAR once again ahead of the competitive segment. This helped mitigate the significant macroeconomic and external cost pressures facing the sector and deliver another year of progress for the business.
“Over the last four years we have strengthened Travelodge considerably. We have upgraded our estate, opened over 50 new hotels, launched our new SuperRooms and now have more than 170 hotels with on-site bar cafes.
“While we are not immune to the cost headwinds facing many UK leisure and hospitality businesses, with strong underlying demand for budget hotels and a healthy secure pipeline of new hotels to open, we will be well positioned once the current cost pressures abate.”
Travelodge launched the SuperRooms concept launched in early 2017 and there are now 990 across the UK, with Travelodge announcing last month that further a 400 will be rolled out to seven more hotels in London and regional cities such as: Bristol, Edinburgh, Manchester and York.
