UK budget hotel brand Travelodge expects that there will be continued pick-up demand from business travelers in 2022 after a quick recovery from the blip caused by the Omicron variant of the Covid-19.
Travels said January sales were affected by the Omicron outbreak and work guidelines from the government house, which was in the UK until 26 January.
But bookings were soon restored in February and were “almost immediately ahead of the 2019 level”, thanks to strong leisure demand and a “blue-collar” business demand recovery.
Announcing the 2021 financial results, Travels said, “We expect that 2022 will benefit from sustainable ‘blue-collar’ business demand, and strong leisure demand, which will allow ‘white-collar’ corporate demand to recover more slowly.”
“Although we are facing a wide range of spending headwinds, including significant inflationary pressures facing the broader UK economy.”
Travellodge recorded total underlying revenue of £ 559.8 million in 2021, down 23 percent from 2019 727.9 million in 2019, but nearly doubled to £ 284.4 million in 2020.
Of its 592 hotels, chain occupancy reached 62.6 percent last year, up from 40.8 percent in 2020 to 80.6 percent in 2019. The average room rate in 2021 reached £ 52.77, which was slightly higher than the rate achieved in 2019 at 52.20.
This improved trading allowed Travelodge to make a consistent profit of £ 81.1 million in 2021, compared to a loss of £ 74 million in 2020.
Martin Robinson, chairman of Travels, said the brand had “strengthened its position as an resilient business” during a “challenging” 2021.
“Despite the slow start in Omicron restrictions in January, trading was still very exciting in 2022, and we are excited to launch our new budget-luxury hotel design (Travelodge PLUS), which provides a more premium look and feel,” Robinson added. .
“It was created in response to the transformation of our most radical brand so far and to become a nation of UK budget travelers, many of us prefer to stay in budget hotels.”
“The budget hotel segment, while not immune to widespread economic uncertainty, has proven resilient and continues to recover more than the rest of the UK hotel market; And we believe that opportunities to grow our business have never been more exciting. “
Travels plans to roll out its Travels Plus design to 60 more hotels in 2022, including properties in the UK’s “popular” business destination.
The chain hopes to open six new leased hotels in the UK and a franchise property in Ireland by 2022.