Travelodge reveals Q1 trading performance
Travelodge has released its Q1 2022 Trading Update for the period ending 31st March 2022, which showed continued outperformance versus the Midscale and Economy sectors, which themselves continued to outperform the rest of the UK hotel industry.
Travelodge’s total underlying revenue was 7% ahead of the equivalent period in 2019, with RevPAR 4.3% ahead of 2019 and RevPAR Growth 7.6ppts ahead of the Midscale & Economy segments of the UK Hotel Market versus 2019. This strong performance saw EBITDA (adjusted) grow to £4.9m, compared to £1.7m in 2019, whilst the company had cash at 31st March of £154.2m.
Three new hotels opened in the quarter including one Irish franchise in Dublin.
Travelodge confirmed that the strong trading performance and outperformance versus 2019 and the MS&E segments continued into Q2, with UK accommodation sales materially ahead of 2019 in all weeks (to end Week 19). It intends to make £70-£80m of capital investment this year, with around 60 hotels to be fully refitted to its new premium look and feel design; 11 of which have already been completed.
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1. RevPAR is computed as the product of the Average Daily Rate for a specified period multiplied by the Occupancy for that period. Like-for-like (“LFL”) RevPAR compares the RevPAR in Q1 2022 vs. Q1 2019 on the basis of RevPAR generated by hotels that were opened before 1 January 2019.
2. EBITDA (adjusted) = Earnings before interest, tax, depreciation, amortisation and before rent phasing adjustment, non-underlying items and reflective of the position in line with historic accounting principles (before IFRS16). This measure reflects the rent reductions following the CVA which completed on 19 June 2020, recognised in line with the cash benefit. Non-underlying items have been removed as they relate to non-recurring, one-off items.