With the exchange of contracts on the Clarendon hotel in Shandwick Place and the official opening of a 64 room hotel in Learmonth Terrace, Travelodge has today become the biggest hotel brand in Edinburgh. The budget hotel company has doubled its room stock in the last decade, adding four city centre locations to its existing operation.
Travelodge's growth has been fuelled by the Scottish capital's unprecedented demand for budget accommodation. Branded low cost hotel supply has grown by 300%* in the last 10 years and now represents 20.4%* of the city's hotel supply. Travelodge has achieved the majority of its recent rapid growth by taking over four three and four star hotels totalling 388 rooms in the city centre.
Travelodge CEO, Grant Hearn said, "Growth in Edinburgh has been one of our priorities as it is such an important tourism economy. We have committed around £50 million to new hotels in the city over the last three years, acquiring existing hotels that had fallen below the standards that the modern day consumer expects. We are very pleased to have secured these fantastic city centre locations and are looking forward to adding more hotels in the city over the coming months and years."
Despite Travelodge's doubling in size to 625 rooms, the budget chain still aims to grow its operation in the city by a further 75% by 2012. With a 249 room hotel in Haymarket and other city projects in various stages of completion, Travelodge will comfortably break the thousand room barrier over the next three years. The continued growth plan will mean an additional £28 million investment and 120 new jobs in the city.
VisitScotland's Chief Executive, Philip Riddle said: "It is great to hear that big players like Travelodge are looking to grow further, adding more quality, low priced accommodation to the city. With some travellers' budgets restricted due to the current economic situation, it is vital that we offer quality accommodation to suit a range of budgets in Edinburgh."
According to a Melvin Gold Consulting report** on hotel supply, the UK budget sector is set to treble by 2027 to 225,000 rooms. This forecasted growth mirrors the rise of the budget sectors in France and the US where demand for low cost accommodation has been driven by the internet and increased supply.
Melvin Gold from Melvin Gold Consulting Ltd said: "The budget sector has been the key growth sector in the hotel industry over the last decade and it still has a considerable way to go. Despite the significant increase in budget accommodation in Edinburgh over the last decade, there is still plenty of opportunity for growth in the city."
In a new Edinburgh Hotel Supply report, released by Melvin Gold this week it was stated that the Scottish capital's budget hotel share was still someway behind some of Britains key tourism cities such as Glasgow (31.4%), Liverpool (36.5%) and Birmingham (28.9%). The report claimed that budget supply is still relatively low, allowing plenty of potential for growth.
Media contact:
Tel Travelodge, Greg Dawson: 01844 358 703
Tel Melvin Gold Consulting, Melvin Gold: 020 8508 0289
Notes to editors:
*Melvin Gold Consulting Edinburgh Hotel Supply Report March 2009
**Melvin Gold Consulting UK Hotel Supply Report March 2008