Budget hotel chain, Travelodge has posted financial results for the year ended 31 December 2018, showing turnover rose to £680.2m for 2018, up from £624m in the previous year.
This figure uplift was mainly due to like-for-like RevPAR growth of 3.2% to £41.69, maturity of the 15 hotels opened in 2017 and the 17 launched in 2018, as well as strong revenue growth in food and beverages.
Occupancy was up from 76% to 78.5%, and the average room rate was maintained at £53.09, in comparison to £53.13 in the previous year.
EBITDA rose by £10.2m to £119m, despite cost pressures such as National Living Wage and higher business rates.
In 2018, Travelodge launched its first Travelodge Plus hotels, and the City of London Travelodge Plus, which are performing in line with expectations.
For 2019, the first quarter has seen mixed trading, with relatively strong London growth offset by declining performance in the regions, however the period typically sees the smallest revenue terms and lowest occupancy.
The company is remaining cautious in the short term due to cost pressures facing the wider sector, and the uncertain UK economic situation.
Travelodge, which is headed up by CEO Peter Gowers (pictured), is on track to open 20 new hotels this year, with the majority scheduled for the final quarter.