Travelodge has reported record full-year results, with revenue exceeding £1b for the first time due to strong demand from business and leisure.
In its financial report for the year ending December 31, 2023, the budget hotel chain reported a significant 14.6% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA), with figures rising from £212.9m to £243.9m.
The company experienced record-breaking trading days and weeks during Eurovision and Wimbledon, which led to the group's highest ever revenue in London and was dubbed 'Travelodge's biggest event of the year'.
Demand has remained robust into the first quarter of 2024, with accommodation sales running approximately 2% ahead of the levels seen in 2023.
The announcement follows the group's acquisition of 66 Travelodge-branded hotels from Travelodge's largest landlord, LXi REIT, for £210 million in February, supported by its owner, GoldenTree Asset Management.
During the financial year, Travelodge expanded its portfolio by opening four hotels, including its first property in Spain in over a decade. Looking ahead, the company has announced plans to open six additional properties in the UK in 2024.
The group has identified over 300 potential locations across the UK for future expansion, with plans to increase yearly openings to around 15 to 20 properties.
Jo Boydell, chief executive of Travelodge, said: 'Travelodge is well-positioned in the budget hotel sector, with robust demand from our diverse mix of leisure and business customers who choose to stay with us for quality, affordable accommodation. We continue to invest in strengthening our brand proposition and driving future growth.
'While we remain mindful of the challenging macroeconomic backdrop, including ongoing cost inflation, we are continuing to invest in the long-term future of the business, including the acceleration of our refit programme and exploring opportunities to open new hotels in both the UK and Spain.'
Travelodge was founded in 1985 and has expanded its portfolio to include nearly 600 hotels and has a workforce of over 13,000 employees.