Travelodge profits soar amid talk of a potential £1bn float
TRAVELODGE reported a surge in full-year profits yesterday, raising prospects that a £1bn flotation could be on the cards.
The budget hotel chain underwent a painful debt restructuring in 2012 that handed control to its US lenders – Avenue Capital, GoldenTree Asset Management and Goldman Sachs.
Under leisure industry veteran Peter Gowers, who was brought in in 2013 to lead a turnaround, Travelodge has seen a bounce back in sales after spending £100m revamping its rooms and launching new hotels. It has enjoyed a surge in business customers, particularly.
The group said underlying profits jumped 63.5 per cent to £66.2m for the year to 31 December. Sales were up 14.9 per cent to £497.2m while revenue per available room (revpar) rose 16.8 per cent to £34.24.
Gowers told BBC Radio 5 that its owners “were not natural long-term holders of the business”. They are reportedly examining options for the group.