Travelodge sees mixed demand in London

Travelodge has announced that strong regional demand for hotel rooms across the UK has helped mitigate “softer trading” conditions in London during the first half of 2024. While the budget hotel chain experienced a surge in bookings around major events, such as Taylor Swift's concerts and significant sporting occasions, it faced challenges linked to Wimbledon, attributed to adverse weather and a decline in midweek leisure visitors. Travelodge CEO Jo Boydell noted that while the UK regions have shown resilience, London’s performance has been affected by a reduced event schedule compared to the previous year. Despite the challenges in London, Travelodge reported encouraging trends in staycation demand, particularly in July, contributing to a 1.7% increase in revenues, reaching £486.7 million for the first six months of the year. Boydell highlighted that while UK revenues in the third quarter are slightly below 2023 levels, July showed positive growth, with forward bookings indicating a strong outlook for the remainder of the year, driven by event demand. The company is also seeing improved sales in locations where it has invested in hotel refurbishments, with plans for 50% of its room estate to be upgraded by year-end. However, Boydell acknowledged that the ongoing renovations have temporarily impacted earnings, as the company has been unable to accommodate guests in refurbished rooms. Travelodge reported underlying group earnings of £94.4 million for the six-month period, after accounting for £12 million in advertising and investment costs.