Travelodge gets revenue boost as budget room demand remains strong
Hotel chain Travelodge has increased revenue by eight per cent as it said that demand for budget rooms was strong despite economic uncertainty.
It reported a total revenue growth of eight per cent for the year to date, climbing to £317.2m.
The company's underlying earnings increased by £1.3m from the previous year to £43.3m – for the six months ending 27 June.
Read more: Travelodge is building its largest hotel ever in London
Its new flagship 395-room Canada hotel opened in July and Travelodge said it was well-positioned to deal with economic pressures.
Nine new hotels have opened since the beginning of the year, which has helped the company outperform the sector, according to the STR industry segment growth.
But the company warned regulatory and inflationary pressures would continue to hamper the industry in the short term.
Read more: AccorHotels scoops up Movenpick Hotels
Chief executive Peter Gowers said: “While the UK continues to face economic uncertainty, demand for budget hotels remains strong and more and more businesses are choosing the budget sector.
“Although the general economic picture, the impact of new supply growth and clear short-term cost headwinds lead us to remain cautious about the immediate outlook, our strategic focus and growing pipeline will position us well as these pressures abate.”