Budget hotel brand Travelodge is attracting more business travellers as the company says it is continuing to "outperform" its market segment.
Parent company TVL Finance said Travelodge increased revenue by 6.6 per cent to £637.1 million in 2017, compared with the previous year, while average room rates rose by 2.8 per cent year-on-year to £53.19 and occupancy rates were “maintained” at 76.1 per cent.
The company has already announced plans to open 20 properties in the UK this year.
Travelodge CEO Peter Gowers said the hotel company had benefited from “rising sales from business customers” – helped by the launch of Super Rooms in 2017, which feature “improved facilities” such as Lavazza coffee pod machines, Hansgrohe showers and a choice of pillows.
The company said it had been selling these Super Rooms for an “average rate premium” of £10-£20 compared with its standard rooms. There are currently 990 of these upgraded rooms across 20 hotels with plans to roll out a further 400 rooms.
“Our continued focus on quality and service is delivering good results,” added Gowers. “This helped mitigate the significant macroeconomic and external cost pressures facing the sector and deliver another year of progress for the business.
“Over the last four years we have strengthened Travelodge considerably. We have upgraded our estate, opened over 50 new hotels, launched our new Super Rooms and now have more than 170 hotels with on-site bar cafes.
“While we are not immune to the cost headwinds facing many UK leisure and hospitality businesses, with strong underlying demand for budget hotels and a healthy secure pipeline of new hotels to open, we will be well positioned once the current cost pressures abate.”
Travelodge opened 15 hotels last year taking its total up to 558 properties offering more than 42,000 rooms. New properties opening in 2018 will include the 395-room London City hotel with 395 rooms, which is due to open this summer. A new location at Gravesend in Kent has already opened this year.