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Travelodge has reported a 0.7% rise in revenues to £1.04bn for the year ended 31 December 2025, due to a strong recovery in the second half of the year.
The group opened 21 UK hotels during the period, which included 12 freehold sites that were rebranded and refitted.
While EBITDA fell to £176.7m, from £213.3m the previous year, Travelodge attributed the decline to industry-wide inflationary pressures – including National Living Wage increases and uncapped rent reviews.
The budget hotel chain saw the London market face softer rates in the first half of 2025, but noted that performance improved in the final six months.
Meanwhile, UK like-for-like RevPAR grew 1.8% in the second half following a 5.6% decline in the first.
The business in Spain saw revenues grow by 22%, delivering an EBITDA of £10.3m with margins of approximately 29%.
Digital investments continued with the launch of an artificial intelligence assistant named Ara and a new room selection feature.
The group ended the year with a cash balance of £113m and opened one new hotel in Stratford during the first quarter of 2026.
Trading in the current year started with total revenues being approximately 3% ahead of 2025 levels.
In its latest financial results, Travelodge also issued an apology regarding a 2022 incident at its Maidenhead hotel and has commissioned an independent review into room security.
Jo Boydell, chief executive of Travelodge, said: “Travelodge delivered solid financial results in 2025, with full year revenue growth driven by a good second half performance following challenging UK market trading conditions in the first half of the year. We saw good demand with occupancy significantly ahead of the MSE hotel segment; however, the market and Travelodge were impacted by softer rates across the UK, particularly in London.
“So far in quarter one, our traditionally smallest trading quarter, we have outperformed the MSE hotel segment in both London and the Regions against a challenging market backdrop. We have also seen good event demand, including the Six Nations and Crufts, while our Spanish business has continued to perform well.”
