Travelodge has reported “record Q3 results”, as the group continues to recover following the Covid-19 pandemic.
Total revenue for the quarter to September 30, 2021 was up 9.9 per cent compared to the same period in 2019, with an adjusted EBITDA profit of £87 million, compared to £57.5 million in 2019.
The group’s portfolio currently stands at 593 hotels and 42,285 rooms, with 15 properties having opened so far this year and another two set to open in Walton on Thames and Newcastle’s Cobalt Business Park before Christmas.
In June 2020 Travelodge entered into a company voluntary arrangement, which included a break clause for landlords wishing to change brands, resulting in several properties switching to rival brands including Ibis Budget.
The group said that “forecasting remains a challenge and we expect the recovery will depend on several factors including the continued effectiveness of the vaccines, consumer and business behaviour and more broadly the general economic environment”.
It expects to open six new hotels in 2022 – a lower figure than average due to new deals being impacted by Covid-19 last year.
Commenting on the results CEO Craig Bonner said:
“Following the lifting of all Covid-19 restrictions Travelodge has delivered a record trading performance in quarter 3. We saw a significant increase in demand post 19 July, with very strong levels of domestic leisure demand across the UK this summer, good ‘blue collar’ business demand and we also benefited from the reduced VAT rate.
“The budget segment continues to recover ahead of the total UK market, and Travelodge has continued its seven-year track record of outperformance against the market segment.
“Whilst forecasting remains a challenge, and we continue to face a range of possible outcomes, we expect to return to 2019 RevPAR levels during 2022, driven by continued leisure and ‘blue collar’ business demand offsetting a slower recovery in ‘white collar’ corporate demand.
“With our large network of hotels stretching the length and breadth of the UK, a strong brand heritage which appeals to a wide mix of customers and our low cost business model, we are well positioned to benefit from the on-going recovery and future growth opportunities. So, whilst we do continue to face uncertainty in the short-term, we remain confident in the long-term prospects for budget hotels.”