Budget hotel chain Travelodge is planning to capitalise on the UK’s growing appetite for cheap stayovers with a £1.3bn expansion programme this year that will target 205 new hotel sites, mostly in London and the south-east.
The move, revealed in Property Week on Friday is a sign of renewed ambition from the once-struggling chain, which almost went bust in the aftermath of the financial crisis and was only saved when its creditors agreed a bailout deal.
Chief executive Peter Gowers, who took charge last year, wants to regain ground ceded to Premier Inn, which has 30% more rooms and is the UK’s biggest budget hotel chain.
Hotel and leisure has proved to be one of the UK’s main growth areas over the past four years. A report by consultant PwC said the hotel sector had grown across the board in the 2014 and forecast that it would maintain the momentum into 2015.
In its forecast for 2015 it said: “Overall, UK hotels are expected to see a 5.6% gain in revenue per available room to £67.39, driven by a 4% rates growth and a 1.6% increase in occupancy.
“This is underpinned by a continued strong recovery in the provinces as well as strong growth in London.”
The Rugby World Cup is expected to play a big role in boosting occupancy levels as tourists from Australia, South Africa and the continent arrive for events scheduled to take place across the country.
Property Week said agents representing Travelodge planned to offer developers 25-year leases, backed by the group’s US investors. Developers would then build the hotel to Travelodge’s specifications and the hotel group would fund the interior.
