Travelodge, the UK’s largest independent hotel brand, has reported results significantly ahead of its previous record year in 2019, as Brits continued to opt for staycation breaks and business travel.
The London-listed hotel company, which offers cheap beds in the UK Spain and Ireland said that revenues were up 25 per cent from 2019 to £909.9m, while pre-tax earnings for the year increased by £83.8m to £212.9m.
Lots of Brits decided to take staycations when international travel was restricted in the pandemic, and the cost of living crisis has helped that trend continue, as people opt for short breaks at home instead of expensive travel abroad. Package holiday giants Tui also warned the age of cheap plane tickets to fill flights are over.
Jo Boydell, Travelodge Chief Executive said: “Travelodge delivered an excellent trading performance in 2022, with record profits and revenue growth.”
“The market recovered, with strong demand for events and short staycation breaks throughout the year as well as for essential business travel and we continued to outperform the midscale and economy segment.”
The announcement continues the recent resilience shown by the travel sector, as holidaymakers opt to continue taking trips despite high inflation and the ongoing cost of living crisis.
Boydell added: “Whilst the current macro-economic environment creates some uncertainty, the budget hotel segment has proven resilient as consumers continue to search for great value options within the marketplace – such as those offered by Travelodge.”
In August, Travelodge opened its first new-build budget luxury hotel in London Docklands, as it looked to expand its ‘budget-luxe’ upgrade programe.
Travelodge currently operate a total network 595 hotels and 45,781 rooms, as of December 2022, with six new hotels opening that year.
The firm said it is targeting 300 new locations across the UK and expect to open eight new hotels in 2023