Travelodge welcomes record revenues and profit in FY22

Travelodge has welcomed record financial results for 2022, as revenues hit £909.9m, soaring by a record growth of 25% or £182m against 2019, and by £350.2m against 2021.  

In addition, EBITDA hit a record £212.9m compared to £129.1m for 2019 and £81.1m for 2021, as the group said full-year results were “significantly” ahead of its previous records achieved in 2019.

Against pre-pandemic times in 2019, UK like-for-like RevPAR was up 23.9% to £52.59, with UK like-for-like occupancy up 1.0pts to 81.8%, while UK like-for-like average room rate was up 22.5% to £64.31.  

The group said its performance reflected the “strength and resilience” of the UK budget hotel market which performed strongly in 2022, driven by strong levels of domestic leisure demand and a rapid recovery in ‘blue collar’ business demand.

Nonetheless, it warned of the inflationary cost pressures impacting the industry, and acknowledged that Travelodge was “not immune” to these. However, it said costs remained well controlled, supported by its operating cost model and strong supplier relationships.

Looking ahead, it noted trading in Q1 of this year has remained strong, again supported by strong leisure and ‘blue collar’ demand, with accommodation revenue around 30% ahead of 2022 levels and 40% ahead of 2019 levels.  

CEO Jo Boydel said: “Travelodge delivered an excellent trading performance in 2022, with record profits and revenue growth. The market recovered, with strong demand for events and short staycation breaks throughout the year as well as for essential business travel and we continued to outperform the Midscale and Economy segment. 

“We pursue a clearly defined UK growth strategy and are targeting new hotels in 300 locations across the country. We continue to evolve our brand offering and we are making good progress in upgrading our estate to the new premium budget-luxe hotel design that we launched last year.” 

She added: “This includes our next generation room concept and a new contemporary look for our Bar Cafes and receptions.  Initial customer and commercial  feedback for this new design has been positive. We also launched our sustainability strategy, ‘Better Future’, which sits at the heart of our business.

“Whilst the current macro-economic environment creates some uncertainty, the budget hotel segment has proven resilient as consumers  continue to search for great value options within the marketplace – such as those offered by Travelodge.  Looking ahead, we remain confident in the long-term prospects for Travelodge and excited about our future growth opportunities.”