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Travelodge has announced strong full-year results following news that the group could be sold for £1bn.
The company reported a 63.3% rise in earnings before interest, depreciation and amortization (EBITDA) to £66.2m for the year ending December 31, while total revenue was up 14.9% to £497.2m.
Travelodge reported that revenue per available room (RevPAR) increased 16.8% to £34.24, and average room rate was up 15.1% to £45.33. Meanwhile occupancy was up 1% to 75.5%.
The results follow reports from the Times, which reports the budget hotel chain could be sold for more than £1bn within the next 12 months.
Its owners, Goldman Sachs, Avenue Capital and GoldenTree Asset Management, are understood to be preparing to appoint advisors to weigh up strategic options, which could include the sale of the chain or a possible flotation.
Peter Gowers, Travelodge chief executive said: “The value hotel market is performing well and new Travelodge is delivering strong outperformance. Our £100m modernisation programme is nearing completion.
“Customer feedback on our changes has been excellent and we have seen strong growth from business customers. The improved guest experience and effective yield management have led to significant profit growth.
“The momentum we saw in 2014 has continued into the new year and we have seen an encouraging start to 2015. The value hotel market remains strong and we continue to outperform our competitive set. We see considerable potential for further like-for-like sales growth and are targeting the roll out of the brand to at least 250 further sites across the UK.”
Travelodge said that it expects to open 15 new hotels with a further 1,300 rooms throughout 2015.
