Travelodge to open 15 UK hotels this year

Travelodge is planning to open 15 hotels across the country in 2025 through both its traditional leasehold model as well as further freehold acquisitions and rebrand and development opportunities.

 

A site in London’s Bromley already opened its doors this year and is set to be joined by nine hotels the group recently acquired on a freehold or long leasehold basis, which will be refitted and rebranded as Travelodges. Four new leasehold hotels will also enter operation by the end of the year.

 

In 2024, Travelodge opened five new UK hotels including in London Bermondsey, Rotherham Central, Colchester Northern Gateway, Bristol Abbey Wood and London Oval Cricket Ground, and acquired an office building near St Paul’s Cathedral in the capital for planned conversion into a 95-bed hotel.

 

Earlier last year, Travelodge completed its first freehold acquisition, purchasing 66 hotels from LXi REIT for £210m with support from its owners, GoldenTree Asset Management.

 

Pipeline developments are progressing against the backdrop of steady financial results, as the business delivered a slight revenue increase to £1.036b for the year ended 31 December 2024, from 2023’s £1.035b.

 

However, inflationary pressures contributed to Travelodge’s earnings before interest, taxes, depreciation and amortisation (EBITDA) dipping by 8% to £224.1m from 2023’s £243.9m.

 

Travelodge cited the new UK hotels as well as good customer demand from leisure and business travellers as driving its financial performance.

 

Occupancy levels remained high but the business was impacted by softer market rates. In Q1, Travelodge’s smallest trading quarter, revenue per available room (revpar) declined slightly versus 2024. The weakest performance was in London, primarily driven by rates and the current market trading environment, including fewer events and weaker corporate demand.

 

Travelodge chief executive Jo Boydell said: “The first quarter is typically quieter for Travelodge. 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.”

 

The group’s operating model and focus on efficiencies helped navigate cost pressures where possible, with upgrades to systems and the launch of the group’s first self-serve hotel trial in St Albans.

 

The chain also invested in an ongoing refit programme through its most significant brand transformation to date – with around 50% of the room estate upgraded at the end of 2024.

 

Boydell added: “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.”

 

Travelodge currently operates more than 600 hotels.