Travelodge has published its financial results for 2023, reporting annual revenues of more than £1 billion for the first time.
Revenue was up 13.7 per cent on the previous year, with EBITDA (earnings before interest, taxes, depreciation and amortisation) up 14.6 per cent to £243.9 million.
The group opened four hotels in 2023, including the 393-room Dublin City Centre Travelodge Plus, which is now the second largest hotel in Dublin city centre, and the first to feature Travelodge’s “premium economy” SuperRooms concept.
Travelodge plans to open six UK properties this year, including Travelodge London Bermondsey which is now taking reservations from 17 June. The 73-room property is one of four Travelodge hotels which have been under construction in the UK capital.
The group also provided an update on its refit programme, which was unveiled in 2022 and features a new “timeless classic style” reception, as well as a contemporary Bar Cafe concept and redesigned rooms.
Travelodge said it was accelerating the programme “following positive impacts on both commercial and customer metrics”, with plans for 50 per cent of the group’s room estate to be upgraded by the end of the year.
The firm recently began the rollout of a new 85 Bar Cafe concept, which references the opening of the brand’s first UK hotel in Barton-under-Needwood in 1985, and features design elements including retro 1980s neon signage, floor-to-ceiling bookcase divisions between zones, and poster art referencing music or films from 1985.
Commenting on the news Jo Boydell, Travelodge’s chief executive, said:
“I am delighted that Travelodge has delivered another record performance in 2023, with revenue above £1 billion for the first time. Our results reflect the hard work and commitment of our teams and the underlying strength of our business.
“We saw several record-breaking trading days and weeks during the year, with highlights including Wimbledon, driving our highest ever revenue in London, and Eurovision, our biggest event of the year, as well as strong demand for networking at business conferences and trade fairs, such as World Travel Market which saw over 40,000 people attend.
“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. Since launching our first new brand campaign for seven years in September 2023, we have seen a positive customer response, including improved brand awareness and consideration.
“Additionally, our hotel refit programme – our most significant transformation to date – saw 25% of the room estate refitted by the end of 2023 and we have plans to accelerate the programme to upgrade half of our rooms by the end of 2024.
“In the first weeks of 2024, we are encouraged that in a traditionally quieter period, overall accommodation sales and forward bookings are ahead of 2023 levels.
“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.”
