Travelodge turnaround continues as profits rise

The group saw revenue climb 8.8 per cent to £693.3 million in the year to December 31, while adjusted earnings grew £9.6 million to £122 million.

The firm, which has hotels across the region, said it will also open about 100 new hotels over the next five years. But the location of these has not yet been revealed.

Last year Travelodge opened in Southwater, close to Telford International Centre.

The 68-room hotel represents an investment of £6 million for the landlord, Telford & Wrekin Council, and is part of the local regeneration Southwater programme.

It is also opening a new 60-bed hotel in Littleton Street West, Walsall, this spring.

Travelodge received 2,500 applications from local residents for the 12 jobs which include one supervisor, five receptionists and six housekeeping team members.

Boss Peter Gowers said the group's results were helped by investment in price and quality.

"Our strategic focus on location, price and quality has enabled Travelodge to deliver a set of excellent results.

"We extended our network of hotels, remained focused on delivering attractive prices and took another step forward on quality," he said.

Travelodge has also benefited from more consumers and businesses opting for budget hotels amid the UK's economic slowdown.

The firm warned that the economic situation remains "uncertain", with Brexit storm clouds refusing to dissipate, causing alarm for businesses.

"These are uncertain times and we are not immune from the short-term challenges, but beyond, we remain confident that there are more opportunities ahead," Mr Gowers added.

Travelodge also bemoaned the impact of "significant" cost increases, citing the National Living Wage and business rates, although it added that it has successfully navigated these challenges.

Over 2018, Travelodge ended the practice of outsourcing housekeeping, bringing staff into direct employment, and abolished the use of zero-hour contracts.

It also took action on gender diversity and the majority of hotel managers are now women.

Like-for-like revenue per available room was up 3.2 per cent last year as Travelodge opened 17 hotels, with a further three in the current quarter.

The firm now boasts a network of 575 in total.

The results mark a continued turnaround from when Travelodge went through a painful restructuring in 2012.

It saw GoldenTree Asset Management, Avenue Capital and Goldman Sachs take control of the company via a debt-for-equity swap from Dubai International Capital.

Since 2013, sales have risen more than £250 million and earnings more than trebled under a five-year transformation plan, spearheaded by Mr Gowers.

The new hotel in Walsall has been designed in the company’s contemporary design and features family, double and accessible rooms. The rooms feature the bespoke king-size Travelodge Dreamer bed, which offers bedside USB charging points, energy saving LED mood enhancing lighting and Italian acoustic door for extra soundproofing.

In addition, all rooms include an en-suite bathroom, power shower, comfort cooling, Freeview TV and free in-room tea and coffee making facilities.