Travelodge revenues surpass £1bn

Travelodge has reported “record” performance with revenues increasing 13.7% to £1.03bn for the year ended 31 December 2023. The group’s EBITDA was also up 14.6% to £243.9m (2022: £212.9m). According to Travelodge, this positive growth, which included a number of record trading days and weeks, was driven by robust demand across its diverse customer base of leisure and business guests. Leisure demand was consistently strong, driven by visits to friends and family, short breaks across the country, events such as Wimbledon, which drove Travelodge’s highest ever revenue in London, and Eurovision, the brand’s biggest event of the year. Travelodge also benefited from robust business travel demand across its diverse range of customers, from tradespeople to business executives and FTSE 100 company employees. This demand has been supported by face-to-face networking events, such as the Defence and Security Equipment International (DSEI) conference in London, driving Travelodge’s busiest week in the second half of 2023, and trade fairs, such as World Travel Market which saw over 40,000 people attend. In what is traditionally a quieter first period, it said positive forward booking patterns have continued into 2024 and first quarter accommodation sales are modestly (approximately 2%) ahead of 2023 levels. Recognising this traditionally quieter period, Travelodge has deliberately invested to accelerate its hotel refit programme. Travelodge’s refit programme, its most “significant transformation” to date, saw 25% of the room estate upgraded to the new design by the end of 2023. Travelodge accelerated this programme following positive impacts on both commercial and customer metrics, with plans to upgrade 50% of its room estate by the end of 2024. The refit programme includes a new hotel design featuring a new style reception area, next-generation rooms with bedside charging ports and blackout curtains and upgraded bar cafes. Looking ahead, the group stated that while the macroeconomic backdrop remains challenging, including ongoing cost inflation, Travelodge expects to benefit from several positive demand drivers. Additionally, long-term growth potential remains significant, and Travelodge has identified over 300 target locations in the UK, with openings expected to return to more normal levels of development as market conditions improve, opening between 15-20 new hotels per year. Jo Boydell, Travelodge chief executive, said: “I am delighted that Travelodge has delivered another record performance in 2023, with revenue above £1bn for the first time. Our results reflect the hard work and commitment of our teams and the underlying strength of our business. “We saw several record-breaking trading days and weeks during the year, with highlights including Wimbledon, driving our highest ever revenue in London, and Eurovision, our biggest event of the year, as well as strong demand for networking at business conferences and trade fairs, such as World Travel Market which saw over 40,000 people attend.” He added: “...We continue to invest in strengthening our brand proposition and driving future growth. Since launching our first new brand campaign for seven years in September 2023, we have seen a positive customer response, including improved brand awareness and consideration. “Additionally, our hotel refit programme – our most significant transformation to date – saw 25% of the room estate refitted by the end of 2023 and we have plans to accelerate the programme to upgrade half of our rooms by the end of 2024.” Boydell concluded: “In the first weeks of 2024, we are encouraged that in a traditionally quieter period, overall accommodation sales and forward bookings are ahead of 2023 levels. While we remain mindful of the challenging macroeconomic backdrop, including ongoing cost inflation, we are continuing to invest in the long-term future of the business including the acceleration of our refit programme and exploring opportunities to open new hotels in both the UK and Spain.”