Travelodge, the UK's fastest growing hotel company, today announced results for the year ending 31st December 2008.
Travelodge delivered significant revenue growth of 19% in 2008, while EBITDA for the company rose 11%. Rooms sold increased by nine percent to six million and occupancy levels were at 74% across the board.
Travelodge continued to deliver against its stated UK growth plan, opening a record 39 hotels (3,844 rooms) in the UK in 2008, creating 750 jobs.
Financial Highlights:
Revenues increased 19% to £289.7 (2007: £243.8 million)
EBITDA in 2008 grew 11% to £57.9 (2007: £52.3 million)
Strong cash position £51m cash in bank, with minimal repayment of debt until 2014
UK Expansion Programme:
Travelodge opened 39 hotels (3,844 rooms) including 231 rooms in Ireland, London Heathrow Central, (307 rooms) and London Southwark, (202 rooms)
As at 31st December 2008, Travelodge operated 368 hotels (26,148 rooms) representing 30% of the budget sector
16 hotels are currently under construction (1,636 rooms)
Company plans to open 25 hotels (2,500 rooms) in 2009 creating 400 jobs
Operational Highlights:
Number one hotel brand in the UK with 98% prompted brand awareness*
Business Account Card launched with 1200 accounts signed up in first three months
87% of reservations are booked online
Occupancy in the UK was stable at 74% across the board
5% revenue growth and 7 point increase in occupancy in existing hotels in Spain
Positive outlook:
Secured planning on 37 hotels (3,982 rooms)
Strongest hotel pipeline in UK
Travelodge will gain market share from the current economic environment as customers continue to switch from 4* and 5* hotels to the budget sector
Benefiting from key holiday periods including half terms, Easter and forward summer bookings
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*BDRC: 2008 Prompted Awareness
Grant Hearn, Travelodge CEO, commented: "2008 was another record year of growth for the Travelodge brand with over 15% of new supply added to our estate. In a more worrying financial period for consumers, the forecasted structural change of the industry has accelerated with business and leisure customers switching from mid scale and upmarket hotels to the budget sector.
"In 2009 we have strengthened our marketing campaigns by offering a 'price check' programme and a business account card for corporate customers. Both of these programmes have established Travelodge as the best value budget hotel brand and have ensured that we continue to outperform the market. Whilst trade remains challenging, we are beginning to see an improvement in trading performance which we would expect to continue throughout the summer holiday period."
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Notes to editors:
Further information contact:
Greg Dawson T: 01844 358644
Travelodge
About Travelodge:
The first budget hotel brand to launch in the UK in 1985, Travelodge now operates 380 hotels (26,500 rooms) - eight in Ireland, three in Spain and the rest in the UK. Travelodge plans to grow its estate to 70,000 rooms (approximately 1000 hotels) by 2020.
Six and a half million people stayed with Travelodge last year and 87% of reservations are currently made online at travelodge.co.uk, where room rates start at £19 a night. The chain employs 5,500 staff and is owned by Dubai International Capital.