Despite continuing political concerns over the cost of the Games, budget hotel chain Travelodge is investing £140Million to make it London's largest hotelier in time for the start of London 2012 Olympics
Travelodge's 2012 Growth Strategy involves building 20 new hotels and 3, 500 new additional rooms in London by 2012. This £140m investment will create 750 new jobs and make it the capital's largest hotelier with 7,000 rooms. Travelodge aims to have 40% of the capitals budget hotel market by 2012.
Five sites are being sought in the Olympic area covering the main sporting stadiums including two in the village.
Following a strong performance in 2006, Travelodge will open over a 1,000 London rooms in 2007 alone City Road (392), London Terminal 5 (297) Euston (150) and Southwark (202).
Travelodge is also exploring a new design of room that it plans to install in all the new London hotels leading up to 2012.
Research commissioned by Travelodge on the economic impact of the Olympics on tourism reveals a potential £2.2bn legacy, if London emulates Sydney's 6% growth rate.
Travelodge Chief Executive Grant Hearn said; " We are investing not only in London, already one of the world's premium destinations but specifically in the potential of the 2012 Olympics. This is a once in a lifetime opportunity for British tourism. As a result we are investing now in order to realise our goal of being the No 1 hotelier in London by 2012.
The evidence from other Games is very encouraging for tourism. The Sydney Games generated 2.5 times its costs in legacy benefits. A similar return could underwrite growth in tourism for the next decade.
I believe the Games will deliver value for money for UK PLC. I am 100% behind the Games and urge the Government to commit its own funds to generating the £2bn tourism legacy it is promising."
As part of British Tourism Week, the industry will debate how to maximise the long term benefits for tourism from hosting the 2012 Games. Travelodge is asking Government to commit to a clearer marketing structure, early planning for overseas marketing campaigns, a one off increase to VisitBritain and VisitLondon's budgets of £25m each, additional powers devolved to the Mayor to oversee planning decisions and a full-time Tourism Minister.
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For further information, please contact:
Greg Dawson, Travelodge, T: 01844 358644
Mark Hutcheon, ReputationInc T: 020 7757 2818
Notes to Editor:
London attracts 46% of all visitors to the UK spending £6.9BN (Source: Tourism Alliance)
Visit London predicts the capital will have 17, 000 budget rooms by 2012 or 14% of the total accommodation market, still below the national average of 20%
Hotel supply has jumped 39% in London since 2002. Growth in budget hotels is 55% outperforms 5 star growth of 4% (Source: Visit London 2006 Accommodation Census)