Travelodge Group

Solid overall financial performance with strong H2 recovery; continued strategic progress and expansion

Travelodge Group financial results for the year ended 31 December 2025

  • Revenue growth of +0.7% to £1,044.3 million (2024: £1,036 million), driven by strong H2 recovery, contribution from new and maturing hotels, and continued good performance from Spanish business
  • Strong H2 recovery following challenging market conditions in H1, with H2 UK like-for-like RevPAR up 1.8%, driven by positive events schedule and ongoing investments in customer proposition
  • Group EBITDA of £176.7 million, with solid H2 – revenue growth and cost efficiencies almost offsetting significant industry-wide inflationary pressures, including National Living Wage increases and uncapped rent reviews; following challenging H1 market conditions
  • Solid liquidity position with year-end cash of £113 million; balancing investment in the core estate with development
  • Continued strategic investments in growth, quality and efficiencies, with over two-thirds of the room estate now featuring the new look and feel (across refits and new hotels), alongside digital innovation and technology enhancements – delivering positive customer and commercial benefits
  • Excellent development progress: Opened 21 UK hotels in 2025 across a range of leasehold and freehold models, including 12 freehold hotels that have been rebranded and fully refitted, four new leasehold hotels, and five leasehold rebrands; acquired office building at Liverpool Street, London, for hotel conversion, with planning consent for St Paul’s expected shortly and consents progressing for Liverpool Street; exchanged contracts for two freehold developments in Spain
  • Spanish business continues to perform well: Revenue growth of c.22%, including new hotels acquired in 2024. EBITDA of £10.3m with strong margins of approximately 29%
  • Solid start to 2026 in traditionally smallest quarter: Total revenue c.3% ahead of 2025, driven by outperformance against Midscale and Economy (MSE) hotel segment, new and maturing hotels, and continued good performance in Spain

Jo Boydell, Travelodge Chief Executive, said: “Travelodge delivered solid financial results in 2025, with full year revenue growth driven by a good second half performance following challenging UK market trading conditions in the first half of the year. We saw good demand with occupancy significantly ahead of the MSE hotel segment; however, the market and Travelodge were impacted by softer rates across the UK, particularly in London, predominantly in the first half, with improved performance in the second half. EBITDA was impacted by significant industry-wide inflationary cost pressures, which were substantially mitigated by cost efficiencies and disciplined cost control. We maintained a strong liquidity position throughout the year, ending 2025 with cash of £113 million.

“We continued to invest in enhancing the customer proposition, with over two-thirds of the room estate now featuring the new look and feel across refits and new hotels, while progressing digital innovation and technology enhancements to improve the customer experience. We made excellent progress on our development plans, opening 21 UK hotels in 2025 across a range of leasehold and freehold models. In Spain, the good development momentum continues with contracts exchanged for two freehold developments expected to open in 2026 and 2027, further building on the three leasehold deals for new build hotels previously announced. 

“So far in quarter one, our traditionally smallest trading quarter, we have outperformed the MSE hotel segment in both London and the Regions against a challenging market backdrop. We have also seen good event demand, including the Six Nations and Crufts, while our Spanish business has continued to perform well. Overall, total revenues for the quarter to date are c.3% ahead of 2025 levels.

“Looking ahead, while we are monitoring the potential impact from economic and geopolitical uncertainty on consumer and business confidence, Travelodge’s strong brand, direct distribution model and balanced customer mix position the Group well for medium-term growth. Investments in both the UK and Spain are delivering results and the Group remains confident in the structural outlook for the budget hotel sector, supported by resilient fundamentals and an attractive supply backdrop.”

25 March 2026 – Travelodge Group, the UK’s first budget hotel brand which operates 630 hotels across the UK, Spain and Ireland, today announces its financial results for the year ended 31 December 2025. The business delivered revenue growth of 0.7% to £1,044.3 million (2024: £1,036 million), driven by a strong H2 recovery, contribution from new and maturing hotels, and continued good performance from the Spanish business.

Trading performance for the year reflects a good second half performance following challenging UK market trading conditions in the first half of the year. Regional performance remained more resilient with good rate performance, broadly in line with 2024 levels. London was impacted by lower rate in the first half but with better rate performance in the second half which was ahead of last year. The second half of 2025 performed relatively stronger, with Travelodge UK like-for-like RevPAR up 1.8% (compared to H1 decline of 5.6%), benefitting from a strong Q3 events schedule. This positive momentum continued into Q4 with UK like-for-like RevPAR up 2.3%.

The Group’s industry-leading operating cost model and strong supplier relationships,  together with investment to deliver cost efficiencies, helped control costs. However, this only partially mitigated the impact of industry-wide inflationary pressures, including significant increases in the National Living Wage, as well as the multi-year inflationary impact on rent costs. The combination of these significantly inflationary and regulated cost pressures and the weaker H1 trading environment meant that Group EBITDA decreased to £176.7 million (2024: £213.3 million), despite the strong H2 recovery.

Travelodge continued to invest in growth and quality through its ongoing refit programme, with approximately two-thirds of the room estate upgraded at the end of 2025, delivering positive commercial and customer benefits. Over 93% of hotels are now rated four dots or above on Tripadvisor, and 369 hotels received a Tripadvisor Traveller’s Choice Award in 2025, up 45 on the previous year. The Group continued to leverage technology to enhance the customer proposition, launching ‘Choose Your Room’ across the estate, expanding its self-serve trial with its first hybrid “StaySmart” hotel in Central London, and launching the new AI assistant ‘Ara’.

In Q1 2026 to date, with Q1 being traditionally Travelodge’s smallest trading quarter, the business has outperformed the MSE market segment in both London and the Regions against a challenging market backdrop. This outperformance has been driven by occupancy, with Travelodge’s occupancy c.9% higher than the MSE market segment, reflecting the investments made in the customer proposition and revenue management and distribution capabilities. The good performance of the Spanish business has continued, with revenue up over 20% on 2025 levels. Overall, total revenues for the quarter to date are c.3% ahead of 2025 levels, including the contribution from new and maturing hotels. There is solid demand across the broad range of business and leisure customers, with encouraging long lead demand patterns and business on the books ahead of last year, although we continue to monitor the potential impact of economic and geopolitical uncertainty on consumer and business confidence.

Continued growth and optimisation of portfolio in the UK and Spain

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

In 2025, Travelodge opened 21 UK hotels across a range of leasehold and freehold models. This includes the acquisition of 12 freehold hotels that have been rebranded as Travelodge, the majority of which have been fully refitted, four new traditional leaseholds and five leasehold rebrands, also fully refitted. The Group also acquired a further office building at Liverpool Street in Central London for conversion to a hotel, following the 2024 acquisition at St Paul’s, with planning consents progressing for both sites. So far this year the Group has opened one new traditional UK leasehold hotel in Stratford London, a prime location with 151 beds and a Bar Café. The Group expects to open four new hotels under its traditional leasehold model in 2026, and two leasehold rebrand hotels that Travelodge exchanged contracts for in 2025.

In Spain, Travelodge’s established profitable business continues to perform well, with revenues growing by c.22% and EBITDA of £10.3 million, with strong EBITDA margins of approximately 29%. Development momentum continues with contracts exchanged for two freehold developments – one in Bilbao expected to open in April 2026 and another in Madrid expected to open in 2027 – further building on the three traditional leasehold deals previously announced. With targets in 20 key markets, the Group plans to continue growing in Spain through traditional leasehold developments as well as freehold or leasehold rebrand acquisitions.

Maidenhead and Independent Review

The safety and security of customers in our hotels is extremely important and we want everyone to be safe, and feel safe, in our hotels. We are deeply sorry for the distress experienced by the victim and for our handling of her case following a serious incident in our Maidenhead hotel in 2022, and the recent related sentencing of the perpetrator.

We have already made some changes to our room access security policy and commissioned an independent review to be led by a leading barrister and involving experts in violence against women and girls. 

Travelodge takes this situation incredibly seriously and we are focused on progressing this important work at pace, and further strengthening our processes.

Outlook: resilient fundamentals, attractive supply backdrop and clear growth strategy

As Travelodge looks towards 2026, there are both opportunities and challenges. 

The UK MSE segment has proven resilience and continues to benefit from its domestic focus, business/leisure mix and value proposition as customers seek good value.

Cost pressures remain, with the cumulative impact of recent policy changes – including higher business rates, rising employment costs and new regulatory requirements – significantly increasing the cost base. Travelodge remains focused on managing inflation through its long-established cost efficiency programme, leveraging in-sourcing, technology, automation and innovation. The Group expects gross cost inflation of 6%-7.5% in 2026, partially mitigated by its ongoing efficiency programme, to net cost inflation of 5%-6.5% (before new hotels), excluding any potential impact from current economic and geopolitical uncertainty. 

Looking ahead, Travelodge sees further growth opportunities, with a diversified pipeline of development opportunities in both the UK and Spain. The business continues to invest in growth, quality and efficiencies, while further expanding its presence through acquisitions and development opportunities. Travelodge’s strong brand, direct distribution model and balanced customer mix position the Group well for medium-term growth. Investments in both the UK and Spain are delivering results, and the Group remains confident in the structural outlook for the budget hotel sector, supported by resilient fundamentals and an attractive supply backdrop.

ENDS

Enquiries:

FGS Global      

Tel: 0207 251 38 01

Email: Travelodge-LON@fgsglobal.com 

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 630 hotels and approximately 49,000 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 93% of its hotels rated 4 dots 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, with over two-thirds of the room estate now featuring the new look and feel across refits and new hotels. 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 Café design, 85 Bar Café, which has been rolled out to selected hotels in the UK and Spain 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.