Thurrock Lakeside Travelodge

Performance Overview

Throughout Q3 and into Q4, Travelodge has outperformed the rest of the Midscale and Economy hotel sector. Overall UK like-for-like RevPAR for Travelodge for the third quarter was up 11.8% on 2019 levels, approximately 17.8pts ahead of the STR MSE benchmark competitive segment. 

Total revenues for the third quarter were up 9.9% on 2019 levels, driven mainly by strong leisure demand and benefiting from the lower VAT rate, peaking in August, with accommodation revenue up c. 30% on 2019 levels. 

Costs remained well-controlled and whilst Travelodge is not immune to the supply chain pressures affecting the wider hospitality industry, these have been well managed, supported by our in-sourced housekeeping model and strong supplier relationships. 

EBITDA (adjusted) for the third quarter was £87.2m (2019: £57.5m, 2020: £4.1m).

Recent Trading

The MSE segment continues to recover ahead of the UK market and in recent weeks is seeing revenue as a percentage of 2019 levels around 15% points higher than the total hotel market, driven mainly by domestic leisure demand.

We have continued to outperform the STR MSE benchmark segment, with UK like-for-like RevPAR performance in the first weeks of the fourth quarter c. 11% above 2019 levels and approximately 12pts([5]) ahead of the competitive segment, with our hotels in London and the Regions both outperforming.

The cash position remains strong.


Forecasting remains a challenge and we expect the recovery will depend on several factors, including the continued effectiveness of the vaccines, consumer and business behaviour and, more broadly, the general economic environment. Also, the industry faces some short-term uncertainty around cost headwinds, particularly with the increase in the National Living Wage and employer National Insurance Contributions. 

The MSE segment is expected to continue to recover fastest, benefiting from its domestic focus, business/leisure mix and value proposition.  We expect to return to 2019 RevPAR levels during 2022, with sustained ‘blue-collar’ business demand, and strong leisure demand offsetting a more gradual recovery in ‘white collar’ corporate demand. 

We expect to open six new hotels in 2022, lower than our long run averages, as new deals were impacted by Covid-19 in 2020, but returning to more normal levels thereafter. 

Highlights (quarter ended 30 September 2021, comparison vs 2019)

  • Total revenue up 9.9% to £229.5m (2019: £208.8m, 2020: £88.2m)
  • RevPAR([1]) up 11.8% to £53.54 (2019: £47.89, 2020: £21.24)
  • RevPAR performance 17.8pts ahead of the competitive segment([2])
  • Occupancy(1) down (1.1)pts to 83.6% (2019: 84.7%, 2020: 51.7%)
  • Average room rate(1) up 13.3% at £64.04 (2019: £56.53, 2020: £41.11)
  • EBITDA([3]) profit of £134.0m (under IFRS 16) (2019: £111.5m, 2020: £31.0m)
  • EBITDA (adjusted)([4]) profit of £87.0m (2019: profit of £57.5m, 2020: profit of £4.1m)
  •  Cash of £151.4m at 30 September 2021
  • 15 new hotels opened
  • Total network now 593 hotels and 45,285 rooms as at 30 September 2021

[1] Revenue per available room, Average room rate and Occupancy on a UK like-for-like basis for the management accounting period 1 Jul 2021 to 29 Sep 21, 2 Jul 2020 to 30 Sep 2020 and 4 Jul 2019 to 2 Oct 2019 for the quarter.  Revenue per available room, Average room rate and Occupancy on a UK like-for-like basis for the management accounting period 31 Dec 2020 to 29 Sep 21, 2 Jan 2020 to 30 Sep 2020 and 3 Jan 2019 to 2 Oct 2019 for the quarter.

[2] Our competitive segment is the Midscale and Economy Sector of the UK hotel market as reported by Smith Travel Research (STR), an independent hotel research provider, providing aggregate benchmarking information on the UK and other hotel market performance

[3] EBITDA = Earnings before interest, tax, depreciation, amortisation and non-underlying items presented on an IFRS basis – including IFRS 16.

[4] EBITDA (adjusted) = Earnings before interest, tax, depreciation and amortisation, and before rent adjustment and non-underlying items, and in line with historic accounting principles (before IFRS 16).  This measure reflects the cash benefit of rent reductions following the CVA which completed on 17 June 2020. Non-underlying items have been removed as they relate to non-recurring, one-off items.