Oasis and Coldplay provide boost for Travelodge during challenging period
Budget hotel brand Travelodge said it had delivered a solid performance over the first half of the year as it faced challenging market conditions.
In the six months ended 30 June 2025, Travelodge reported revenues of £471.3m, below the £486.7m recorded in the same period the year before, which it said reflected softer market demand, particularly in Greater London, and the “phasing of events” into the second half.
Travelodge said this was partially offset by the contribution from new hotels and strong growth in Spain.
Travelodge said its guests used its hotels as a base for major events such as the Six Nations Rugby, Radio One Weekend in Liverpool, the Grand National, the London Marathon, and, post-period, concerts including Oasis, Ozzy Osbourne and Black Sabbath’s “Back to the Beginning” and Coldplay’s tour.
Jo Boydell, Chief Executive of Travelodge, said: “As previously highlighted, demand was softer in the first half, particularly in Greater London, and event phasing has shifted more activity into the second half of the year.
"Profits were impacted by approximately £20m of inflationary cost increases, including around £9m from National Living Wage uplifts and additional National Insurance costs.
"Despite these headwinds, our diversified business and leisure customer base supported strong occupancy of over 82 per cent, and the performance of our Spanish business was a particular highlight, delivering strong revenue and profit growth.
“We are undertaking our largest development programme in over a decade – having opened 11 new UK hotels so far this year, with at least nine more to come in the second half, and continuing with upgrades across our estate, with approximately 65 per cent of our rooms now refitted to next generation standards.
"Alongside this, we continue to enhance our customer proposition through digital innovation and new features, including the rollout of the ‘Choose Your Room’ customer feature; our first hybrid ‘StaySmart’ hotel, which offers flexible self-serve check in options via mobile app, kiosk, or reception; and a new AI assistant, Ara – all supporting long-term growth and quality.”
Travelodge said its Spanish business continues to perform strongly, with revenues up by around 30 per cent and EBITDA (earnings before interest, taxations, depreciation and amortisation) increasing by more than 30 per cent to £4.8m, driven by like-for-like revenue growth as well as the contribution from six freehold hotels acquired in 2024. Founded in 1985, Travelodge is one of the largest budget hotel chains in the UK, with a portfolio of 610 hotels and more than 47,000 bedrooms across the UK, Ireland and Spain.