The Scotsman

Travelodge books sales surge

- By SCOTT REID

Hotel chain Travelodge has benefited from belt-tightening Britons, reporting rising sales and profits in the first half of the year.

The group, which has more than 40 establishm­ents in Scotland, saw revenue rise 8 per cent to £317.2 million in the six months to 27 June, while adjusted earnings grew by £1.3m to £43.3m.

The firm pointed to “economic uncertaint­y” in the UK, which has helped drive up demand for low-cost accommodat­ion among holidaymak­ers and businesses. Travelodge has also cashed in on the trend for weekend city breaks.

Chief executive Peter Gowers said: “While the UK continues to face economic uncertaint­y, demand for budget hotels remains strong and more and more businesses are choosing the budget sector.”

However, the group also highlighte­d “significan­t” cost increases, citing the National Living Wage and operationa­l burdens, although it added that it has successful­ly navigated these challenges.

Like-for-like revenue per available room was up 3.1 per cent, helped by the reopening of one of its London hotels.

Gowers added: “Travelodge delivered strong revenue growth and has continued to outperform the midscale and economy market segment. Our focus on location, price and quality is paying off with another period of increased occupancy.”

The results mark a continued turnaround from when the group went through a major restructur­ing in 2012. It saw Goldentree Asset Management, Avenue Capital and Goldman Sachs take control of the company via a debt-forequity swap from Dubai Internatio­nal Capital.

In June, Travelodge said it was looking for a further 20 sites across Scotland after cutting the ribbon on its 44th establishm­ent north of the Border. It officially opened its second site in Stirling, the city where it opened its first Scottish budget hotel, in 1986.

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