Strong fundamentals, with full year results in line with expectations; continued investments driving growth, quality and efficiencies

Travelodge Group financial results for the year ended 31 December 2024

  • Revenue growth of +0.1% to £1,036 million (2023: £1,035 million), supported by new hotels in the UK and Spain and resilient customer demand from leisure and business travellers – with higher occupancy offset by softer market rates
  • Continued investments in the business to drive growth, quality and efficiencies, including multi-channel advertising campaign, refit programme and digital innovation to enhance customer proposition, together with system upgrades – which are driving positive customer and commercial benefits 
  • Group comparable EBITDA of £224.1 million, impacted by softer market rates and continued industry-wide inflationary pressures, mitigated by growth and efficiency initiatives 
  • Expanded property portfolio in the UK: Opened five new UK hotels (London Bermondsey, Rotherham Central, Colchester Northern Gateway, Bristol Abbey Wood and London Oval Cricket Ground); acquired office building in St Paul’s, London, for hotel conversion; and post year-end exchanged contracts to acquire nine hotels to be rebranded as Travelodge
  • Doubled presence in Spain: Acquired six freehold hotels in Spain, rebranded as Travelodge, doubling presence in attractive Spanish budget hotel market
  • Encouraging demand indicators: Solid demand, with 2024 occupancy slightly ahead of 2023, and good long lead event demand, with a robust events programme for 2025, as customers continue to prioritise spend on experiences

Jo Boydell, Travelodge Chief Executive, said: “Travelodge delivered a solid performance, with results in line with expectations for 2024, reflecting resilient demand from both business and leisure customers. Occupancy slightly exceeded 2023 levels, though market rates were softer overall, particularly in London.

“Travelodge continued its expansion strategy in both the UK and Spain. In the UK, we opened five new leasehold hotels and acquired a prime freehold office building in St Paul’s, London, for hotel conversion. In 2025 we will open at least 15 new UK hotels, through our traditional leasehold model as well as further freehold acquisitions and rebrand/development opportunities. This includes London Bromley, a recent leasehold rebrand, nine hotels recently acquired on a freehold or long leasehold basis to be rebranded as Travelodge, and four new leasehold hotels set to open later this year. In Spain, we doubled our presence by acquiring six hotels which we rebranded in 2024 and signed deals for three new build hotels in San Sebastian, Cadiz and Alicante. We continue to see good growth opportunities in the Spanish market.”

“The first quarter is typically quieter for Travelodge, and we have seen a slight decline in demand due to several external factors, including fewer events being held across the UK. However, we are encouraged by improving indicators, including strong long lead event demand, with more events now announced for 2025 than in all of 2024 and positive indications of future construction sector demand. Leisure demand has been the strongest so far, boosted by events including the Six Nations rugby and Crufts.

“Looking ahead, market fundamentals remain strong and Travelodge sees exciting growth opportunities. We continue to invest in growth, quality and efficiencies, while further expanding and optimising our presence through a strong freehold and leasehold development pipeline in the UK and Spain. With a strong brand, efficient operating model and well-invested hotel network, we are well-positioned for long-term growth in the budget hotel sector.”

27 March 2025 – Travelodge Group, the UK’s first budget hotel brand which operates more than 600 hotels, today announces its financial results for the year ended 31 December 2024. The business delivered a slight increase in revenue to £1,036 million (2023: £1,035 million), driven by new hotels in the UK and Spain and good customer demand from leisure and business travellers. 

Travelodge benefited from continued high occupancy levels but was impacted by softer market rates. Leisure guests used Travelodge as a base for sports events such as Wimbledon, Cheltenham Festival and The British Grand Prix, as well as music concerts including Taylor Swift’s Eras Tour, Kings of Leon and Justin Timberlake, while business travellers attended meetings and industry events such as the World Travel Market and IFSEC (global security industry) events at ExCeL London, and the Farnborough International Airshow.

Travelodge continued to invest in growth and quality through its ongoing refit programme – the Group’s most significant brand transformation to date – with c.50% of the room estate upgraded at the end of 2024, delivering positive commercial and customer benefits. The Group’s multi-channel advertising campaign continued in 2024, increasing website visits, booking and improved brand metrics, while the launch of Travelodge’s new mobile app with personalised features achieving 4.8* reviews and driving strong adoption levels. Efficiencies and innovation also remain a focus, with upgrades to systems and the Group launching its first ever self-serve hotel trial in St Albans.

Financial performance during the period reflects resilient market demand combined with these strategic investments and the impact of continued industry-wide inflationary cost pressures. Adjusting for these factors, Group comparable EBITDA was £224.1 million. The Group’s industry-leading operating cost model and focus on efficiencies helped navigate the cost pressures where possible, although Travelodge did see significant inflationary cost increases in common with the wider hospitality sector.

In Q1, Travelodge’s smallest trading quarter, market RevPAR (revenue per available room) declined slightly versus 2024, impacted by a series of factors. The weakest performance was in London, primarily driven by rates and reflective of the current market trading environment, including fewer events and weaker corporate demand. The regions have performed more strongly with good customer demand, but market rates are slightly below 2024 levels. Leisure demand remains robust, supported by strongly performing events such as the Six Nations rugby and Crufts. While short-lead demand has been softer, long-lead event bookings remain strong, with a robust events programme in 2025, as customers continue to prioritise spend on experiences and there are positive indications of future construction sector demand. With a strong brand, efficient operating model and well-invested hotel network, Travelodge is well-positioned for future growth opportunities.

Continued growth and optimisation of portfolio in the UK and Spain 

Travelodge continues to see significant growth opportunities both in the UK and Spain, through the traditional leasehold model, as well as further freehold acquisitions and rebrand/development opportunities.

In 2024, Travelodge opened five new UK hotels including London Bermondsey, Rotherham Central, Colchester Northern Gateway, Bristol Abbey Wood and London Oval Cricket Ground, and acquired a prime office building near St Paul’s Cathedral for planned conversion into a 95-bed hotel. Earlier in the year, Travelodge completed its first freehold acquisition, purchasing 66 hotels from LXi REIT for £210m with support from its owners, GoldenTree Asset Management. So far this year we have opened London Bromley, a leasehold rebrand, and recently, the Group exchanged contracts to acquire nine additional hotels to be rebranded as Travelodge and fully refitted during 2025. The Group also plans to open four new UK leasehold hotels in 2025.

In Spain, Travelodge doubled its strong presence in the country by acquiring six freehold and long-leasehold hotels from Louvre Hotels Group in April, now trading as Travelodge. With a target of 20 key markets, the Group plans to grow in Spain through new developments as well as freehold or leasehold rebrand acquisitions. Deals have been signed for three new-build hotels in San Sebastian, Cadiz and Alicante, set to open within three years, with additional pipeline opportunities well progressed.

Outlook: resilient customer demand, good cost control and clear growth strategy

Despite macroeconomic uncertainty, Travelodge is confident in the long-term prospects for budget hotels and its future growth opportunities. 

Cost pressures remain, with the National Living Wage increase and changes to employer National Insurance contributions expected to add c.£21 million to 2025 costs – as previously disclosed. However, Travelodge remains focused on managing inflation through its long-established cost efficiency programme, leveraging in-sourcing, technology, automation and innovation. 

Looking ahead, Travelodge sees exciting growth opportunities with a strong freehold and leasehold development pipeline. The business continues to invest in growth, quality and efficiencies, while further expanding its presence through acquisitions and development opportunities across the UK and Spain. With a strong brand, efficient operating model and well-invested hotel network, Travelodge is well-positioned for long-term sustainable growth.

ENDS

Enquiries:

FGS Global      

Tel: 0207 251 38 01

Email: Travelodge-LON@fgsglobal.com 

Jenny Davey

Anjali Unnikrishnan      

About Travelodge  

Founded in 1985, Travelodge is Britain’s very first budget hotel chain and today is one of the largest budget hotel chains in the UK, with a portfolio of over 600 hotels and over 47,000 bedrooms across the UK, Ireland and Spain.  

In Spain, Travelodge has an established profitable presence and has ambitious growth plans within this market and has identified the top key locations where it would like to open additional hotels in Spain. 

Welcoming over 22 million guests annually across the UK, Ireland and Spain, the majority of Travelodge hotels are located in major cities, towns and holiday hotspots as well as by airports and key business hubs. With over 95% of its hotels rated 4* or above on TripAdvisor, Travelodge is proud to offer guests across its diverse customer base a good value experience – whether they are travelling for business or leisure. 

Whether out celebrating a birthday, going to a concert or sporting event, visiting friends and family, taking a business trip, working away from home, or taking a short break, we help people to go and do their thing by Being the Brilliant Base.

Travelodge continues to invest in its ongoing hotel refit programme and has already upgraded over 50% of the Travelodge room estate to its new design. The brand is also continually evolving its quality offering to deliver a better experience for its diverse mix of business and leisure guests such as its new look Bar Cafe design, 85 Bar Café, which has been rolled out to selected UK hotels as part of the refit programme.  

Travelodge is focusing on its environmental and social impact, with sustainability integral to its business strategy. Its Better Future sustainability plan aims to build a more sustainable future for its customers, colleagues and the planet, underpinned by three core pillars: Inclusive – ensuring we are accessible, inclusive and well-priced to our customers and colleagues; Caring – creating a caring and healthy environment for our colleagues and customers and ensuring their wellbeing; and  Conscious – Travelodge is conscious of its impact on the planet, taking into account the waste it produces, the energy and other resources it consumes and the carbon emissions it generates.  

For further information visit travelodge.co.uk or the Travelodge Hotels Limited LinkedIn page.