Travelodge plans to open 15 hotels across the UK in 2025 using a combination of its traditional leasehold model, freehold acquisitions, and opportunities for rebrands and developments.
A site in London’s Bromley has already opened this year, with nine more hotels recently acquired on a freehold or long leasehold basis set to be refitted and rebranded as Travelodges. Additionally, four new leasehold hotels are expected to begin operations by the end of the year.
In 2024, Travelodge opened five new UK hotels in locations including London Bermondsey, Rotherham Central, Colchester Northern Gateway, Bristol Abbey Wood, and London Oval Cricket Ground. The company also acquired an office building near St Paul’s Cathedral in London, which it plans to convert into a 95-bed hotel.
Earlier last year, Travelodge completed its first freehold acquisition, buying 66 hotels from LXi REIT for £210m with backing from its owners, GoldenTree Asset Management.
Travelodge's pipeline developments are advancing alongside stable financial results, with the company reporting a marginal revenue increase to £1.036bn for the year ending 31 December 2024, compared to £1.035bn in 2023.
Despite the revenue increase, inflationary pressures led to an 8% decline in Travelodge’s EBITDA, which fell to £224.1m in 2024 from £243.9m in 2023.
Travelodge attributed its financial performance to strong customer demand from both leisure and business travelers, as well as the addition of new UK hotels.
Travelodge maintained high occupancy levels, but softer market rates impacted its performance. In Q1, traditionally its smallest trading quarter, revenue per available room (RevPAR) saw a slight decline compared to 2024. London experienced the weakest performance, largely due to reduced rates and a challenging market environment, including fewer events and lower corporate demand.
Travelodge chief executive Jo Boydell said: “The first quarter is typically quieter for Travelodge. However, we are encouraged by improving indicators, including strong long lead event demand, with more events now announced for 2025 than in all of 2024 and positive indications of future construction sector demand. Leisure demand has been the strongest so far, boosted by events including the Six Nations rugby and Crufts.”
Travelodge's operating model and emphasis on efficiencies helped mitigate cost pressures, supported by system upgrades and the launch of its first self-serve hotel trial in St Albans.
The chain also continued its ongoing refit programme, marking its most significant brand transformation to date, with approximately 50% of its room estate upgraded by the end of 2024.
Boydell added: “Looking ahead, market fundamentals remain strong and Travelodge sees exciting growth opportunities. We continue to invest in growth, quality and efficiencies, while further expanding and optimising our presence through a strong freehold and leasehold development pipeline in the UK and Spain. With a strong brand, efficient operating model and well-invested hotel network, we are well-positioned for long-term growth in the budget hotel sector.”
Travelodge currently operates over 600 hotels.
