Record first-half performance for Travelodge as it accelerates refit rollout

Travelodge has reported a 22% increase in revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 48% in its half-year financial results.

The budget hotel chain reported a record first half for the six months to 30 June 2023 driven by concerts, events, short leisure breaks and the return of business travel.

It also saw revenue increase 22.4% to £478.7m, while adjusted EBITDA soared 48% to £104.5m. Revenue per available room, meanwhile, was up 21% to £54.92.

Full-year profits for the chain, which operates nearly 600 hotels, are expected to be ahead of 2022.

Travelodge opened four hotels in the first half of the year – three in the UK and one in Spain – with long-term growth likely to accelerate as market conditions improve. It is plannig a further 300 hotels in the UK.

Travelodge also reported a record level of Travelodge Business Account sign-ups over the period, signalling a return to business travel as companies head to exhibition events for face-to-face networking.

"I am delighted to announce a record first-half performance which reflects strong customer demand from our diverse mix of leisure and business guests," said Travelodge chief executive Jo Boydell.

"Leisure guests used Travelodge as a base to enjoy friends and family get-togethers, and sports and music events including the Six Nations rugby, the Grand National and Eurovision. This is alongside business guests returning to trade fairs and looking for affordable and quality accommodation for their day-to-day business needs."

The group also said it plans to accelerate its refit rollout, with 25% of its rooms on track to be upgraded to its new design by the end of the year.

"The new design includes features our customers have told us are important, like bedside USB charging ports, blackout curtains, a new comfy armchair and a number of sustainable initiatives, such as carpet made from recycled fishing nets and old plastic bottles, and low-energy lighting," said Boydell.

"As we look ahead, we see significant opportunities for further growth and have identified more than 300 sites for new Travelodge hotels across the UK, as well as opportunities to grow our operation in Spain."

In June, The Times reported that Travelodge was to be put up for sale by its hedge fund owner, Goldentree, for £1.2b as it seeks to profit from strong demand in domestic travel.