Travelodge has revealed its yearly sales edged higher as consumers prioritised experiences, but said 2025 has got off to a slow start in spite of a demand boost from the Six Nations rugby and Crufts.
The budget hotel brand - which runs more than 600 sites across the UK, Ireland and Spain - saw revenues remain above £1 billion in 2024, rising slightly by 0.1% over the year.
Underlying earnings stood at £224.1m last year, with the group saying on a comparable basis adjusted earnings fell 11% to £211.5m as it faced "softer market rates and continued industry-wide inflationary pressures".
Occupancy levels were slightly higher thanks to people going to more events, such as Wimbledon, Cheltenham Festival, concerts including Taylor Swift's Eras Tour and business conferences.
However, the group cautioned that sales have dipped in recent months due to fewer events and slower corporate demand, and weaknesses in the wider market.
Revenue per available room - a key measure of demand for hotels - fell slightly year on year in the first quarter so far, with declines led by London.
"The first quarter is typically quieter for Travelodge and we have seen a slight decline in demand due to several external factors, including fewer events being held across the UK," Jo Boydell, chief executive of Travelodge, said.
"However, we are encouraged by improving indicators, including strong long lead event demand, with more events now announced for 2025 than in all of 2024," she said
The CEO added that there were "positive indications of future construction sector demand".
The group said it was taking action to offset a hit of about £21m this year from soaring UK labour costs due to the incoming national insurance rise and minimum wage hike.
"Travelodge remains focused on managing inflation through its long-established cost efficiency programme, leveraging in-sourcing, technology, automation and innovation," the company said.
