Travelodge Group has seen positive financial results for the year 2024, with a slight increase in revenue. The group continues to focus on expanding its presence in the UK and Spain through new acquisitions and hotel openings, solidifying its position in the budget hotel sector.
Steady revenue growth despite market pressures in 2024
Travelodge Group reported a modest revenue growth of +0.1%, reaching £1,036 million, compared to £1,035 million in 2023. This increase was driven primarily by new hotel openings in the UK and Spain, along with resilient demand from both leisure and business travelers.
Despite this growth, the group faced challenges with softer market rates, especially in London, which impacted overall RevPAR.
The group’s comparable EBITDA for the year stood at £224.1 million, reflecting the ongoing inflationary pressures affecting the hospitality industry. However, these challenges were mitigated by strong occupancy levels, particularly from leisure guests attending high-profile events such as Wimbledon, the Cheltenham Festival, and the British Grand Prix.
Business travel also remained a significant contributor, with high attendance at industry events like the World Travel Market and ExCeL London’s security sector exhibitions.
Travelodge delivered a solid performance, with results in line with expectations for 2024, reflecting resilient demand from both business and leisure customers. Occupancy slightly exceeded 2023 levels, though market rates were softer overall, particularly in London.Jo Boydell, Travelodge Chief Executive
Investments in brand transformation, including a comprehensive refit program, digital innovation, and a multi-channel advertising campaign, were key factors supporting the company’s performance. These strategic investments aim to enhance customer experience and improve brand metrics, which have led to positive commercial benefits, including increased website visits and booking rates.
Travelodge also focused on innovation with the launch of its mobile app, receiving strong adoption and positive feedback. Despite rising operational costs, the company’s industry-leading cost model helped to maintain profitability.
Expansion in the UK and Spain
In 2024, Travelodge opened five new hotels in the UK, including locations in London Bermondsey, Rotherham Central, Colchester Northern Gateway, Bristol Abbey Wood, and London Oval Cricket Ground.
The company also acquired an office building near St. Paul’s Cathedral in London, planning to convert it into a 95-room hotel. Furthermore, Travelodge completed its first freehold acquisition, purchasing 66 hotels from LXi REIT for £210 million.
In Spain, Travelodge doubled its presence by acquiring six hotels, now operating under the Travelodge brand. The company has also signed deals for three new-build hotels in San Sebastian, Cadiz, and Alicante, which will open in the next three years.
The group aims to continue expanding in key Spanish markets through new developments and rebranding opportunities.
Continued investment and strategic focus
Travelodge’s continued investment strategy aims to drive growth, quality, and operational efficiencies. In 2024, the company embarked on a significant refit programme, upgrading around 50% of its room estate by the end of the year.
The company’s strategy focuses on managing inflationary pressures and increasing efficiencies through in-sourcing, technology, and automation. Despite external economic challenges, Travelodge remains optimistic about future growth and plans to open at least 15 new UK hotels in 2025.
Outlook for the future
Travelodge continues to invest in both expansion and modernization, with a focus on maintaining its efficient operating model while adapting to changes in the market. The group is also exploring acquisitions and development opportunities in both the UK and Spain, with a goal of reaching 20 key markets in Spain. Travelodge remains confident in its long-term growth strategy.
With a strong brand, efficient operating model and well-invested hotel network, Travelodge is well-positioned for long-term growth in the budget hotel sector.Jo Boydell, Travelodge Chief Executive
The company’s pipeline for 2025 and beyond includes multiple new hotels, both through acquisitions and the development of new properties. With these strategic initiatives in place, Travelodge is set to strengthen its market presence and remain a key player in the European budget hotel sector.
About Travelodge
Founded in 1985, Travelodge is Britain’s very first budget hotel chain and today is one of the largest budget hotel chains in the UK, with a portfolio of over 600 hotels and over 47,000 bedrooms across the UK, Ireland and Spain.
In Spain, Travelodge has an established profitable presence and as of April 2024, its portfolio doubled to 12 hotels, having recently acquired a further six properties. Travelodge has ambitious growth plans within this market and has identified the top 20 key locations where it would like to open additional hotels in Spain.
Welcoming over 22 million guests annually across the UK, Ireland and Spain, the majority of Travelodge hotels are located in major cities, towns and holiday hotspots as well as by airports and key business hubs. With 90% of its hotels rated 4* or above on TripAdvisor, Travelodge is proud to offer guests across its diverse customer base a good value experience – whether they are travelling for business or leisure. In 2023, approximately 50% of rooms were sold for less than £60.
Whether out celebrating a birthday, going to a concert or sporting event, visiting friends and family, taking a business trip, working away from home, or taking a short break, we help people to go and do their thing by Being the Brilliant Base.
Travelodge continues to invest in its ongoing hotel refit programme which is expected to see 50% of the Travelodge room estate upgraded to its new design by the end of 2024. The brand is also continually evolving its quality offering to deliver a better experience for its diverse mix of business and leisure guests such as its new look Bar Cafe design, 85 Bar Café, which has been rolled out to selected UK hotels as part of the refit programme.
Travelodge is focussing on its environmental and social impact, with sustainability integral to its business strategy. It’s Better Future sustainability plan aims to build a more sustainable future for its customers, colleagues and the planet, and it is underpinned by three core pillars: Inclusive – ensuring we are accessible, inclusive and well-priced to our customers and colleagues; Caring – creating a caring and healthy environment for our colleagues and customers and ensuring their wellbeing; and Conscious – Travelodge is conscious of its impact on the planet, taking into account the waste it produces, the energy and other resources it consumes and the carbon emissions it generates.
For further information visit travelodge.co.uk or the Travelodge Hotels Limited LinkedIn page.
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