Travelodge posted revenue growth for the first half of 2024, aided by strong occupancy growth from both leisure and business customers as well as new hotels.
For the six months ended June 30, 2024, the budget hotel chain posted revenue of £486.7 million, up 1.7 per cent from H1 2024’s £478.7 million. However, underlying group Ebitda amounted to £94.4 million compared to Ebitda of £104.5 million for the same period the prior year, a reduction attributed to the impact of planned investments.
During the period, Travelodge progressed on a refit programme, advertising campaign as well as upgrades to property management and IT systems along with investment in technology. The company also focused on the expansion of its UK and Spanish portfolio. In the UK, it acquired 66 Travelodge-branded hotels from LXi REIT plc and opened five new hotels. In Spain, it acquired five hotels from Louvre Group, signed an agreement to acquire one further hotel and inked deals for three new builds in San Sebastian, Cadiz and Alicante.
Turning to current trading, Travelodge noted that although UK revenues in the third quarter to date are modestly below 2023 levels, performance through July showed improvement, with UK revenues surpassing 2023 levels.
What they said
Travelodge chief executive Jo Boydell said: “Travelodge Group delivered a first-half performance in line with expectations, with our financial performance reflecting our continued investment in the business to drive growth and quality, including freehold acquisitions, as well as inflationary cost pressures and softer market demand, particularly in London.
"Forward bookings are positive, with booked revenue to the end of the year ahead of 2023 levels at this point, driven by strong event demand. Our strong financial position, combined with our affordable proposition and diversified, increasingly well invested hotel network, position us well for long-term growth.”