Thought leadership

Hotel chain Travelodge has posted a 63.5% increase in underlying profits to £66.2million and total revenue up 14.9% to £497.2m thanks to a £100m modernisation programme to improve customer experience.

These strong figures continued into the first quarter of 2015 with UK RevPar up 17.6% on the previous year, and earnings before interest for the 12 months to the end of Q1 2015 of £77.3m.

Reports now suggest that Goldman Sachs and a group of New York hedge funds, which took control of Travelodge in 2012 after the chain nearly collapsed, could put Travelodge up for sale in the coming year for more than £1billion. They are understood to be in the process of appointing advisers to consider their strategic options.

This dramatic turnaround was talked about at length by Travelodge’s Andrew Archibald, Customer Service Director and Jon Hendry Pickup, COO, at Engage Customer’s Evolution of VOC forum in February.

Peter Gowers, Travelodge Chief Executive says: “The value hotel market is performing well and new Travelodge is delivering strong outperformance.  Our £100m modernisation programme is nearing completion with 90% of our UK rooms now featuring our new room design.  Customer feedback on our changes has been excellent and we have seen strong growth from business customers.  The improved guest experience and effective yield management have led to significant profit growth.”


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