Record results for Travelodge amid cost-of-living crisis

Revenue was up 33.5 per cent to £278.6 million for the hotels group which surpassed the pre-pandemic 2019 full year results by the end of the third quarter.

For the three quarters revenue is up 22.7 per cent to £669.9m on 2019.

Occupancy is up to 81.5 per cent compared to 80.8 per cent in 2019.

Average room rate is up 19.8 per cent at £63.59 from £53.08 and revenue per room is up 20.8 per cent to £51.80.

Travelodge's earnings before tax for the three quarters were £164.4m compared to £102.2m in 2019 and £43.7m last year. For the third quarter it was £93.8m from £87m a year earlier.

Five new hotels have opened this year, including one Irish franchise, and the total network at the end of September was 595 hotels and 45,624 rooms.

Jo Boydell, Travelodge chief executive, said: “Travelodge has delivered a record set of financial results, significantly ahead of 2019, driven by strong demand for our great value hotels as customers return to both business and leisure travel. Our purpose is to provide affordable travel for everyone and amid the growing cost of living pressures, we have seen that more customers are choosing to stay with us.

"We have continued to outperform against the competitive segment, for the eighth consecutive year, and it’s particularly pleasing to see these trends continue in the first weeks of the fourth quarter. Our cash position remains strong, and we have continued to invest in the business whilst also further de-leveraging, with the term loan repaid in full on October 26."

Mrs Boydell added: "Looking ahead, we are very mindful of the cost-of-living crisis and are doing all we can to navigate the cost pressures on our business. The near-term trading signs are positive, but booking patterns remain short-lead and we therefore have limited visibility.

"However, the budget end of the hotel segment is the most resilient, with budget brands historically performing strongest in tough economic times. Travelodge, with its strong brand, diversified network of hotels, value proposition and efficient operating model, remains well placed to deliver for customers and we are excited about the growth opportunities ahead.”

The record results have been driven by strong leisure and ‘blue-collar’ business demand, more than offsetting the more gradual recovery in ‘white-collar’ demand.