Revenue reached £693.3m, with RevPAR up 3.2% to £41.69 and occupancy at 78.5%. EBITDA increased by £9.6m reaching £122m. In a statement Travelodge said it had “delivered total revenue growth of 8.8% in 2018, with 3.2% like-for-like RevPAR growth and a significant contribution from new hotels opened since 2017.
And had “continued to outperform our competitive segment with our like-for-like RevPAR growth 2.3pts ahead of the STR MSE segment, which grew by 0.9%. This strong growth has helped to mitigate the impact of significant cost increases, particularly the National Living Wage, business rates and the costs associated with our improved occupancy. EBITDA of £122.0m was up £9.6m on the prior year. We opened 17 hotels in 2018 with a further 3 opened shortly after year-end.”
Peter Gowers, Travelodge Chief Executive commented: “Our strategic focus on location, price and quality has enabled Travelodge to deliver a set of excellent results. We extended our network of hotels, remained focused on delivering attractive prices and took another step forward on quality. Once again we outperformed our competitive segment and delivered another year of strong growth, with EBITDA up £9.6m to £122m. 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.”
Adding: “These results highlight Travelodge’s transformation over the last five years. Over that period, Travelodge’s sales are up by more than £250m, we’ve outperformed our competitive segment for five years in a row, opened more than 60 new hotels and more than trebled our profitability. We’ve invested in better quality and choice for our guests, while staying true to our budget roots. People are noticing the difference, culminating in our being recognised, for the first time, as one of the world’s top ten global hotel chains by TripAdvisor. The long-term growth opportunities for the budget sector remain strong and we expect to open 100 new hotels over the next five years, creating approximately 3,000 jobs.”