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Travelodge has reported that its revenues inched up by 0.1% to £1.036bn, up from £1.035bn, in the year to 31 December 2024, thanks to sports events such as Wimbledon and music concerts including Taylor Swift’s Eras Tour, Kings of Leon and Justin Timberlake.
While the hotel chain benefited from continued high occupancy levels from leisure and business travellers, it was impacted by softer market rates.
As a result, the group’s adjusted underlying EBITDA stood at £224.1m, which was also 11% lower at £211.5m on a comparable basis.
During the year, Travelodge still continued its investment in quality through its ongoing refit programme which saw about half of its room estate get upgraded by the year’s end.
In addition, the group’s multi-channel advertising campaign continued in 2024, increasing website visits, booking and improved brand metrics, while the launch of Travelodge’s new mobile app with personalised features achieved 4.8-star-average reviews and strong adoption levels.
Jo Boydell, chief executive of Travelodge, said: “Travelodge delivered a solid performance, with results in line with expectations for 2024, reflecting resilient demand from both business and leisure customers. Occupancy slightly exceeded 2023 levels, though market rates were softer overall, particularly in London.
“Looking ahead, market fundamentals remain strong and Travelodge sees exciting growth opportunities. We continue to invest in growth, quality and efficiencies, while further expanding and optimising our presence through a strong freehold and leasehold development pipeline in the UK and Spain. With a strong brand, efficient operating model and well-invested hotel network, we are well-positioned for long-term growth in the budget hotel sector.”
The first quarter of 2025, Travelodge’s smallest trading period, saw its market RevPAR decline slightly compared with the previous year. The group’s weakest performance of the quarter was in London, primarily due to rates and fewer events and weaker corporate demand.
