Travelodge, the United Kingdom’s second-largest hotel firm by hotel number, has completed the first phase of its property-upgrade program.
Sixty-five hotels, including three new-builds, now sport the brand’s “budget-luxe premium” design.
The three new-build hotels, all opened in the past six months, include two in London — one each in the Docklands and Wimbledon neighborhoods — and one in Hexham, Northumberland. The Hexham property is very close to Hadrian’s Wall, the defensive structure built by the Romans in AD 122 which spans England and is close to the Scottish border.
Karen Broughton, Travelodge's chief sales and marketing officer, said the company will extend the program.
“In addition, all new-build Travelodge hotels will also feature our budget-luxe design. We will be launching the next phase of our budget-luxe hotel upgrade this spring,” she said.
One major change is the addition to some hotels of The Bar Café, which will provide table seating with USB and laptop connections and a restaurant serving full breakfasts and dinner.
More than 200 hotels across Travelodge's portfolio now have the restaurant concept, including approximately half of the recently renovated hotels.
The approximately 600 remaining Travelodge hotels have very limited food and beverage, usually nothing more than a vending machine in a tiny lobby and check-in area, but Travelodge plans to expand offerings in the second phase of upgrading.
Broughton added guests have stated that more stylish design and in-house food and beverage have taken on more importance since the COVID-19 pandemic as both leisure and business travelers seek more budget accommodation options but do not wish to forgo comfort and experience.
During the pandemic, Travelodge experienced its second company voluntary arrangement, a business model change in which it reduced the level of rent it paid owners.
Despite initial complaints, most of its owners, including Secured Assets, a real estate investment trust, signed up for the new deal.
Following a court action in which it was deemed lawful for owners to dismiss their contracts with Travelodge, a handful of properties did switch brand affiliations, notably to Accor as Ibis-branded hotels and new hotel firm Ago Hotels.
In its latest earnings report, Travelodge's revenue as of Sept. 30, 2022, increased 33.5% over the comparable period in 2019 to 278.6 million pounds sterling ($344 million).
At the time, Travelodge CEO Jo Boydell said, “Whilst the current political and macroeconomic environment creates an uncertain backdrop, the budget hotel segment has proven resilient, and we expect to benefit from attractive demand drivers.”
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