Budget hotel brand Travelodge has reported a 6% increase in revenues to £337.3m for the six months ended 30 June 2019, against the backdrop of a “challenging political and economic picture”.
RevPAR increased by 0.6% to £38.78, occupancy was up 2.4pts to 77.9% and the brand opened 10 new hotels during the half-year period. However, its average room rate decreased by 2.5% to £49.78.
Travelodge said it continues to face “significant” cost pressures, including the further increase in the National Living Wage from April 2019.
It said it helped mitigate these pressures with “ongoing” investments in operational technology, including smart tablets to help manage key processes, and improved automated scheduling for our maintenance team.
CEO Peter Gowers said: “It’s quite a tough market out there, but Travelodge has continued to outperform despite the challenging conditions.
“We’ve been investing in greater choice for customers while maintaining our reputation for low prices, helping us attract more and more people looking to make their travel money go further in these uncertain times.”
He added: “Against the backdrop of Brexit uncertainty and a slowing economy, there are clearly some challenging trends to deal with. At Travelodge we’re focused on what we can do, which is deliver value to our customers.”