Travelodge has continued its turnaround and reported higher sales and profits for 2018.
The budget accommodation group behind 578 hotels in the UK, Ireland and Spain, saw revenue increase 8.8% to £693.3 million last year. Revenue per room rose 3.2%. Profits increased by £9.6 million to £122 million.
It was helped by a string of new openings, including a £95 million, 395-bedroom building next to Aldgate station.
Travelodge also benefited from the launch of ‘Travelodge Plus’: a new concept to attract business guests. Rooms cost up to £10 more than a normal one and the hotels are slightly more upmarket, have lots of USB power points, and plenty of booths for meetings.
The company plans to open 100 new hotels over the next five years.
Chief executive Peter Gowers said: “These are uncertain times and we are not immune from the short-term challenges, but beyond, we remain confident that there are more opportunities ahead.”
Like rivals, the business is grappling with higher business rates and wages.
Gowers became boss in 2013 and was charged with leading a turnaround of the group which had suffered a crisis as interest on its towering debts became unsustainable.
The current owners are GoldenTree Asset Management, Avenue Capital and Goldman Sachs.
