Travelodge's Revenue Breaks Through £1 Billion Mark
Posted by Emma on 31st Mar 2024
Travelodge has surpassed £1 billion in revenue, marking a significant milestone fuelled by robust demand from business travellers and tourists. The budget hotel chain unveiled its annual results for December 31, 2023, showcasing a remarkable 14.6% increase in EBITDA - from £212.9 million to £243.9 million.
Travelodge, Newmarket Rd by N Chadwick, CC BY-SA 2.0, via Wikimedia Commons
This achievement was bolstered by record sales during significant events such as Eurovision and Wimbledon, culminating in Travelodge's highest revenue recorded in London. The trend of high demand has persisted into the first quarter of 2024, with accommodation sales already outpacing the previous year by approximately 2%.
The successful year follows Travelodge's strategic acquisition of 66 hotels for £210 million in February 2023, expanding its portfolio under the stewardship of GoldenTree Asset Management. The company opened four new hotels last year, including a significant launch in Spain, and plans to introduce six additional UK properties in 2024. With an eye on expansion, Travelodge has identified over 300 potential UK locations, aiming to increase its yearly openings to 15-20 hotels.
Jo Boydell, Travelodge's CEO, commented on the company's strategy, "Travelodge is well-positioned in the budget hotel sector, with robust demand from our diverse mix of leisure and business customers who choose to stay with us for quality, affordable accommodation. We continue to invest in strengthening our brand proposition and driving future growth. While we remain mindful of the challenging macroeconomic backdrop, including ongoing cost inflation, we continue to invest in the business's long-term future, including the acceleration of our refit programme and exploring opportunities to open new hotels in both the UK and Spain."
Since its inception in 1985, Travelodge has grown to nearly 600 hotels and over 13,000 employees, affirming its status as a leader in the budget hotel sector.
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