Travelodge announces record third quarter profits
Hotel chain Travelodge has published its latest financial figures, showing record results for the third quarter.
The Thame, Oxfordshire-based group reported profits of £93.8 million for the quarter ending September 30, 2022, compared to £57.5 million for the same period in 2019 – the last 'normal' year before the pandemic.
Travelodge also reported record results for the first nine months of 2022, and said it had surpassed its 2019 full year results by the end of the third quarter.
Occupancy stood at 86 per cent in the third quarter, up from 85 per cent in 2019, with average room rates up 31.7 per cent at £74.81, compared to £56.79 in 2019.
The group said it had opened five new hotels in the period, with a further ten expected to open in 2023.
Its current network extends to 595 hotels with 45,624 rooms.
Jo Boydell, Travelodge Chief Executive commented: “Travelodge has delivered a record set of financial results, significantly ahead of 2019, driven by strong demand for our great value hotels as customers return to both business and leisure travel.
"Our purpose is to provide affordable travel for everyone and amid the growing cost of living pressures, we have seen that more customers are choosing to stay with us.
We have continued to outperform against the competitive segment, for the eighth consecutive year, and it’s particularly pleasing to see these trends continue in the first weeks of the fourth quarter.
"Our cash position remains strong, and we have continued to invest in the business whilst also further de-leveraging, with the term loan repaid in full on 26 October.
"We were also pleased that on 17 November Moody’s upgraded our credit rating from Caa1 to B3, reflecting the businesses strong performance.
Looking ahead, we are very mindful of the cost-of-living crisis and are doing all we can to navigate the cost pressures on our business.
"The near-term trading signs are positive, but booking patterns remain short-lead and we therefore have limited visibility.
"However, the budget end of the hotel segment is the most resilient, with budget brands historically performing strongest in tough economic times.
"Travelodge, with its strong brand, diversified network of hotels, value proposition and efficient operating model, remains well placed to deliver for customers and we are excited about the growth opportunities ahead.”