Travelodge eyes expansion with 100 new hotels as turnaround delivers higher sales

One of the UK’s largest budget hotel groups hailed its own turnaround plan this morning after posting a rise in revenues and plans for 100 new site openings seven years after being on the brink of collapse.

Travelodge, which has lured more customers into its value hotels amid an economic slowdown, posted sales of £693m during the course of 2018, rising 8.8 per cent from the previous 12 months.

Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation rose £9.6m to £122m.

The company, which embarked on a restructuring plan in 2012 that involved radically slashing its debts, also revealed plans to open 100 new hotels over the next five years, adding that the move would create approximately 3,000 jobs.

Business customers have played an increasing role in Travelodge’s revenue model, with the group announcing plans late last year to invest £100m into establishing new hotels aimed at the UK’s growing conference sector.

Read more: Travelodge targets conferences centres in £100m push

However, the group struck a more cautious tone when looking towards the firm’s short-term outlook, saying that trading for the first eight weeks of the year had been "mixed".

"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," according to chief executive Peter Gowers.

The Travelodge boss said that the results highlighted the group’s transformation over the last five years: "We’ve invested in better quality and choice for our guests, while staying true to our budget roots. People are noticing the difference."