Expanding Travelodge to create 3,000 jobs as 2018 sales and profits jump

Travelodge has reported rising annual sales and profits, with the budget hotels chain set to create 3,000 new jobs over the coming years as it continues to expand.

It follows the company saying last week that it was actively searching for a further 21 hotel sites across Scotland, as it launched its 45th hotel north of the Border.

The group saw revenue climb 8.8 per cent to £693.3 million in the year to 31 December, while adjusted earnings grew £9.6m to £122m.

Chief executive Peter Gowers said the results were helped by investment in price and quality .“Our strategic focus on location, price and quality has enabled Travelodge to deliv- er a set of excellent results. We extended our network of hotels, remained focused on delivering attractive prices and took another step forward on quality,” he said.

Travelodge has also benefited from more consumers and firms opting for budget hotels.

The firm warned that the economic situation remains “uncertain”, with Brexit storm clouds refusing to dissipate, causing alarm for businesses.

“These are uncertain times and we are not immune from the short-term challenges, but beyond, were main confident that there are more opportunities ahead ,” Gowers added.

Travelodge also bemoaned the impact of “significant” cost increases, citing the National Living Wage and business rates, although it added that it has successfully navigated these challenges. The group will also open around 100 new hotels over the next five years, creating 3,000 jobs.

Like-for-like revenue per available room was up 3.2 per cent last year as Travelodge opened 17 hotels, and boasts a network of 575 in total.

Since 2013, sales have risen more than £250 million and earnings more than trebled.