Record financial results and continued outperformance
Headlines (period ended 30 June 2022, comparison vs 2019)
- Total underlying revenue up 16.0% to £391.2m (2019: £337.3m, 2021: £145.2m)
- Occupancy1 down 0.5pts to 79.2% (2019: 78.7%, 2021: 45.5%)
- Average room rate1 up 12.6% at £57.47 (2019: £51.05, 2021: £38.89)
- RevPAR up 13.3% to £45.51 (2019: £40.16, 2020: £17.69)
- RevPAR performance 9.0pts ahead of the competitive segment vs 2019
- EBITDA (adjusted) profit of £70.6m (2019: profit £44.7m, 2021: loss £43.3m)
- Cash of £174.3m at 30 June 2022
- 5 new hotels opened to date, including one Irish franchise
- Total network now 597 hotels and 45,761 rooms as at 30 June 2022
Headlines (quarter ended 30 June 2022, comparison vs 2019)
- Total underlying revenue up 22.8% to £235.7m (2019: £192.0m, 2021: £103.6m)
- Occupancy1 up 2.3pts to 83.4% (2019: 81.1%, 2021: 58.0%)
- Average room rate1 up 16.8% at £65.26 (2019: £55.86, 2021: £43.03)
- RevPAR1 up 20.2% to £54.44 (2019: £45.28, 2020: £24.98)
- RevPAR performance 9.6pts ahead of the competitive segment2 vs 2019)
- EBITDA (adjusted)3 profit of £65.7m (2019: profit £42.9m, 2021: profit £2.9m)
Travelodge has delivered record trading performance in the first half of the year with revenue and profits significantly ahead of 2019 levels. This performance has been driven by strong leisure and ‘blue collar’ business demand, more than offsetting a more gradual recovery in ‘white collar’ demand and the impact of Omicron in January. We also continued our unrivalled record of outperformance against the MS&E segment. We are facing pressure from inflation, but costs were well controlled and whilst we have also seen some impact of the supply chain challenges facing the hospitality industry, these continue to be well managed.
Trading in the first weeks of quarter three has remained strong, with continued good leisure and ‘blue collar’ demand across all areas of the country. The recovery in ‘white-collar’ business demand continues, including Central London mid-week, with an improving trend prior to the normal seasonal slowdown. We continue to outperform against the market segment. We now expect 2022 full year RevPAR to be ‘mid-teen’ percent ahead of 2019 levels reflecting current trading patterns and a continued recovery in ‘white-collar’ business demand. The impact of the current macroeconomic environment on demand does however remain uncertain, but we do expect continued inflationary pressures on costs.
While forecasting remains challenging with limited forward visibility, we remain well positioned, with our large network of hotels, value proposition and focus on domestic travel.
 Revenue per available room, Average room rate and Occupancy on a UK like-for-like basis for the management accounting period 31 Mar 2022 to 29 Jun 2022 and 4 Apr 2019 to 3 July 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 30 Dec 2021 to 29 June 22 and 2 Jan 2019 to 3 Jul 2019 for the period.
 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
 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.