Travelodge hails ‘solid start’ to 2026 despite slide in full-year profits

Travelodge posted a 0.7% uplift in group revenue to £1.04b in the year to 31 December 2025 despite a 1.9% decline in group revenue per available room (revpar) to £57.

Earnings before interest, taxes, depreciation and amortisation declined 20% year-on-year to £161.2m, which Travelodge attributed to increased costs from the National Living Wage, employer’s National Insurance Contributions and rent reviews “significantly increasing the cost base” of the business.

The group, which opened 21 new hotels across the UK during its 2025 financial year, attributed its full-year revenue uplift to new and maturing hotels across its estate, alongside a strong performance across its Spanish business.

Across its UK division revpar rose 1.8% year-on-year spurred by demand across both its London and regional hotels, while occupancy rose 0.7% to 85.7%.

Average daily rates (ADR) across its UK division increased 1% to £72 – up 33.5% on pre-pandemic levels.

The budget hotel chain said it had outperformed the market during its current financial year so far, in what is typically its “smallest trading quarter.”

Revenue in the first quarter of Travelodge’s current financial year is up 3% year-on-year despite a “slight decline” in UK revpar like-for-likes.

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