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Travelodge has welcomed “record-breaking” half-year results, with revenue and profit both significantly ahead of 2022 levels.
In the six months ended 30 June 2023, revenues rose by 22.4% to £478.7m, while adjusted EBITDA rose by 48% to £104.5m.
Travelodge said its strong half year performance, which included a number of record-breaking trading days and weeks, was driven by demand from both leisure and business travellers.
Over the period, the group witnessed increased demand from a return to face-to-face business travel, with a growth in corporate exhibitions including the International Food and Drink Event and IFSEC, the security conference, at ExCel London.
Travelodge opened four hotels in the period, including three in the UK and one in Spain, with a further three openings planned for the second half of the year.
It added that long-term growth potential “remains significant”, and it has identified the opportunity for a further 300 hotels in the UK, with openings expected to return to more normal levels as the current adverse market conditions improve, through a mix of new build, conversions, going concerns, standalone and mixed-use schemes.
Alongside strong potential in the UK market, Travelodge is exploring expansion opportunities in Spain, following the opening of its first new hotel in the country in ten years in Madrid. The company now operates six hotels in Spain with 700 rooms.
Jo Boydell, Travelodge CEO, said: “I am delighted to announce a record first half performance which reflects strong customer demand from our diverse mix of leisure and business guests.
“Leisure guests used Travelodge as a base to enjoy friends and family get-togethers, and sports and music events including the Six Nations rugby, the Grand National, and Eurovision. This is alongside business guests returning to trade fairs, and looking for affordable, and quality accommodation for their day-to-day business needs.”
She added: “We are continuing to invest in our UK hotel portfolio, with a quarter of our room estate on track to be upgraded to our new design by the end of this year as part of our most significant transformation to date.
“As we look ahead, we see significant opportunities for further growth and have identified more than 300 sites for new Travelodge hotels across the UK, as well as opportunities to grow our operation in Spain.”
