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.“
Monday, April 13, 2015