Travelodge Q3 revenue hits £230m amid staycation boom
Craig Bonnar, chief executive, said the hotel group is ‘well positioned’ to benefit from the on-going recovery and future growth opportunities
Travelodge has seen its revenue rise by 10% to £229.5m in the third quarter of 2021, up from the £208.8m reported in Q3 2019, as trading was bolstered by a rise in staycations across the UK.
Over the period, profit also rose to £134.0m, up from £111.5m in 2019, before the pandemic hit.
It comes as the budget market reportedly remained “resilient” in the quarter, with revenue as a percentage of 2019 levels ahead of the total hotel market, driven by the “strong levels” of domestic leisure demand and a “good recovery” in blue collar business demand.
The hotel group also added 15 new sites to its portfolio over the period, taking its total portfolio to 593 hotels and 45,285 rooms as of 30 September 2021.
Craig Bonnar, chief executive, said: “Following the lifting of all Covid-19 restrictions Travelodge has delivered a record trading performance in quarter 3.
“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.”
He added: “The budget segment continues to recover ahead of the total UK market, and Travelodge has continued its seven-year track record of outperformance against the market segment.
“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.”
