Travelodge reported a “solid” performance in the third quarter ending 30 September 2025.
Year-to-date group revenue reached £783.2 million, remaining broadly flat compared with the same period last year, reflecting a softer first half.
The budget hotel chain said a challenging first half of the year was offset by a strong third-quarter performance, supported by improved market conditions in the UK, new hotel openings, and continued growth in its Spanish operations.
Year-to-date adjusted EBITDA reached £140.2 million, down from £171.7 million a year earlier.
Looking ahead, Q4 trading appears encouraging, with performance 4% ahead of 2024 levels.
Travelodge has opened 21 new UK hotels so far this year, spanning both leasehold and freehold models.
Around two-thirds of the hotel chain’s estate has now been upgraded, including the introduction of new digital features such as Choose Your Room, AI assistance, and a self-service trial.
Meanwhile, the group’s food and beverage operations continue to drive revenue and margin growth, supported by menu upgrades.
Jo Boydell, chief executive of Travelodge, said: “Travelodge delivered a solid third quarter, with revenue and profit growth in line with expectations, supported by an improving UK market backdrop. We saw good leisure demand around major events – such as the Oasis reunion, Coldplay at Wembley, the Women’s Rugby World Cup Final at Twickenham, the British Grand Prix and Goodwood Festival of Speed.
“On the business travel side, key conferences and exhibitions like Defence and Security Equipment International (DSEI) in London also boosted performance. New and maturing hotels across London and the regions, as well as in Spain, contributed positively, and good food & beverage performance continued to deliver revenue and margin growth.”
She added: “As previously reported, the first half was more challenging, with softer UK market conditions and persistent inflationary pressures weighing on year-to-date results, only partially offset by the positive Q3 performance. Group profit for the nine months was impacted by c.£30 million of cost inflation, including National Living Wage (NLW) and National Insurance increases.
“Into 2026, we expect further cost pressures from the 2026 increase in NLW, the Employment Rights Bill, the business rates revaluation due in April 2026 and the introduction of new visitor levies, though the impact remains difficult to quantify at this stage. We remain focused on strong cost control and technology driven efficiencies to help mitigate these pressures as far as possible.
“Looking ahead, we are encouraged by positive trading momentum in the fourth quarter, with total revenue to date c.4% ahead of 2024 and forward bookings also ahead of last year, however, we note the usual limited visibility. Amid ongoing macroeconomic and political uncertainty – including cost pressures from the UK Budget – we remain cautious about consumer demand and cost inflation.
“However, Travelodge is well positioned for medium-term growth and is confident in the structural outlook for budget hotels, underpinned by proven resilience, strong fundamentals and an attractive supply backdrop.”
