Speculation mounts over Travelodge sale
Travelodge has reported a 63.5% jump in underlying earnings as speculation mounts that it will soon be up for sale.
Unveiling its financial results for the year ended December 31, the budget chain said net earnings climbed to £66.2 million.
Revenue increased 14.9% to £497.2 million, average room rate rose 15.1% to £45.33 and occupancy was up 1.0 percentage point to 75.5%
The group said growth was particularly strong in the UK regions, where the economic recovery gathers pace.
RevPar was up 16.8% to £34.24, outperforming the market.
~·
According to the Times newspaper, Travelodge’s owners Goldman Sachs, Avenue Capital and GoldenTree Asset Management are preparing to sell the group, or do a flotation.
The UK chain, which was rescued from potential financial collapse just three years ago, could be valued at more than £1 billion, said the Times.
The group is close to completing a~· £100 million modernisation programme, with 90% of UK guest rooms now under the new design.
Five new hotels have already opened this year and 10 more are set to open.
Travelodge chief executive Peter Gowers said: "The momentum we saw in 2014 has continued into the new year and we have seen an encouraging start to 2015.
"The value hotel market remains strong and we continue to outperform our competitive set. We see considerable potential for further like-for-like sales growth and are targeting the roll out of the brand to at least 250 further sites across the UK."
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists