Hotels

Travelodge Q3 revenues hit £229.5m amid staycation boom

Total revenue was up 9.9% to £229.5m from £88.2m the previous year, whicst RevPAR increased 11.8% to £53.54 from £21.24 in 2020

Travelodge has revealed its total revenues increased  to £229.5m for the three-month period ending 30 September 2021, up from £88.2m in 2020,  largely boosted by the rise in staycations.

Travelodge also reported that EBITDA rose to £87m, whilst RevPAR increased 11.8% to £53.54, up from £21.24 in 2020.

The group said it expects to return to 2019 RevPAR levels during 2022, with sustained “blue-collar” business demand and strong leisure demand offsetting a more gradual recovery in “white collar” corporate demand.

In addition, a further six new hotels are in the pipeline for 2022, which while lower than the long run averages, as new deals were impacted by Covid-19 in 2020, is set to return to “more normal levels thereafter”.

Craig Bonner, chief executive, said: “We saw a significant increase in demand post 19 July, with very strong levels of domestic leisure demand across the UK this summer, good ‘blue collar’ business demand and we also benefited from the reduced VAT rate.

“With our large network of hotels stretching the length and breadth of the UK, a strong brand heritage which appeals to a wide mix of customers and our low cost business model, we are well positioned to benefit from the on-going recovery and future growth opportunities.”

He added: “So, whilst we do continue to face uncertainty in the short-term, we remain confident in the long-term prospects for budget hotels.”

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