Travelodge hails recovery as it returns to profit

Travelodge has announced its 2021 revenue stands at £559m, an increase from £284m in 2020, according to its full year results ended 31 December 2021.

The group also reported adjusted profits of £81.1m in 2021, springing back from a loss of £74m in 2020.

Travelodge said its improvement in current trading follows the lifting of the work from home guidance on 26 January, with “strong” leisure trading expected to continue, driven by staycation demand.

However, the revenue recorded in 2021 remains 23.1% down on 2019 levels. Travelodge said its 2021 trading period was “significantly” impacted by Covid-19 with restrictions in place for most of the first half of the year.

Total underlying revenues for the fourth quarter alone were up 1.8% on 2019 levels driven by extended leisure demand, particularly over the October half-term.

Additionally, it added costs remained “well controlled” and whilst Travelodge said it is not “immune to the supply chain pressures”, these were managed by its in-sourced housekeeping model and strong supplier relationships.

Martin Robinson, Travelodge chairman, said: “Travelodge reinforced its position as a resilient business with a powerful brand throughout a challenging 2021. The business continued to out-perform the market for the seventh year in a row and enjoyed a record-breaking summer and in line with our growth plans, we opened a further 17 new hotels.

“Trading so far in 2022 has been extremely encouraging, despite a slow start amidst the Omicron restrictions in January, and we are excited to launch our new budget-luxe hotel design, which offers a more premium look and feel whilst maintaining our great value price proposition.”

He added: “With our large, diversified network of hotels, strong brand, value proposition, and focus on domestic budget travel, we are well positioned to benefit in the anticipated recovery.”