Travelodge revenues get lift from UK staycation trend

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NS

The budget hotel chain said growth in accommodations helped Travelogue achieve record sales in the third quarter.

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On the back of 593 hotels, the company said sales reached £229.5 million in the three months to 30 September, compared with £88.2 million a year earlier, when travel restrictions severely damaged the leisure sector. The performance was better than the pre-Covid performance of £208.8 million.

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Revenue per room was £53.54, an improvement over the previous two years.

Travelodge, which is owned by GoldenTree Asset Management, Avenue Capital and Goldman Sachs, acquired a company voluntary arrangement last year, a move that helps those in agreement to cut rents or close.

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The chain, which has sites in Ireland and Spain but mostly in the UK, has seen a significant increase in customer demand since the summer, as travel restrictions and lockdowns are eased.

Growth was led by domestic customers and improved business demand.

Hotel operators will be watching for any impact on bookings from the emergence of the Omicron version.

Travelodge chief executive Craig Bonner said: “While we face uncertainty in the short term, we remain confident in the long-term prospects for budget hotels.”

Travelodge said forecasting remains a challenge and “we expect recovery to be dependent on a number of factors, including the continued effectiveness of vaccines, consumer and business behavior and more broadly the general economic environment”.

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