Travelodge, the UK's fastest growing budget hotel chain, today announces its results for the year ended 31 December 2006.
Travelodge achieved revenue growth of 17% in 2006, driven by a 63% increase in internet sales and a four percentage point rise in occupancy, which reached 78%. A record 4.9 million rooms were sold as a result of the budget chain's £10 million price cutting programme and the opening of 27 new hotels in 2006.
Financial Highlights:
- Revenues in 2006 increased 17% year-on-year to £203.5 million
- EBITDA grew by 19% year-on-year to £46.2 million
- Room occupancy improved by 4 percentage points to 78%
Fastest Growing UK Hotel Chain:
- Travelodge opened 27 new hotels in 2006 (2,548) rooms taking the total number of rooms to 20,000
- Travelodge opened one in three of all UK hotel rooms opened in 2006 and is on track to reach its 32,000 room target by 2010
Operational Highlights:
- Internet sales grew by 63% in 2006 and now represent 83% of all bookings
- Travelodge continued its commitment to low-cost by selling one million rooms at £26 or less in 2006
- Travelodge recently launched its Travel Insurance offer to capitalise on the strength of the Travelodge brand in the £674m travel insurance market
Positive Outlook:
Travelodge is on track to deliver 32,000 rooms by 2010
Travelodge will boost its commitment to its low pricing strategy by selling 2 million rooms at £26 or less in 2007
Grant Hearn, Travelodge CEO, commented: "We are delighted to announce a strong set of results for 2006 as our growth continues to gather momentum. Our relentless focus on price has struck a chord with the consumer and we are now attracting new customers from new markets every day.
"We are opening a new hotel on average every eight working days to meet demand. We are on track to deliver our growth targets and will open 3,000 rooms this year with London being a priority city. We will open 1,000 new rooms in the Capital during 2007, meaning we are well on our way to becoming the biggest hotelier in London by the Olympics 2012."
For Further information, please contact:
Travelodge:
Greg Dawson, Communications Director
Tel. 01844 358644
Finsbury Group:
Rollo Head / James Leviton / Emily Blyth
Tel. 0207 251 3801