(qlmbusinessnews.com via telegraph.co.uk – – Fri, 5th Oct 2018) London, Uk – –
Travelodge is ramping up its expansion into the business market, with a £100m initiative to target sites near major conference centres.
The budget hotel chain has identified 10 locations across the country, from London’s Olympia to Glasgow’s SEC Centre, where it is “actively looking” to run new hotels.
The company said the extra hotels would create around 300 jobs.
Founded in 1985, Travelodge claims to be Britain’s first budget hotel chain. It operates 567 sites across UK, Spain and Ireland and welcomes around 19m customers each year. Historically associated with leisure travellers, more than half of the company’s customers are now business customers.
On Thursday it opened a 68-room hotel next to the Telford International Conference Centre, and now operates close to the 20 most popular conference and events centres in the country.
Travelodge is looking for third party investors to fund the 10 new hotel sites. Other locations include the ACC Liverpool & Echo Arena, Coventry’s Ricoh Arena and the Queen Elizabeth Centre in London.
The UK events sector contributes £42bn to the economy, according to research by Eventbrite.
Travelodge property managing director Paul Harvey said: “Due to the growing volume of events taking place across the country, there is a shortage of good quality and low cost accommodation close to event venues.
“Our hotels located close to conference and event centres are literally booked out as soon as event dates are released and value seeking attendees will even book into a Travelodge up to 20 miles from the event venue.”
Despite what chief executive Peter Gowers called “economic uncertainty”, Travelodge posted an 8pc growth in first-half revenues last month. Revenue per available room, a key industry metric, rose 3.1pc to £38.68.
Mr Gowers said the company “continued to outperform the midscale and economy market segment”.
By Oliver Gill