Travelodge reveals ‘softer’ London demand despite Taylor Swift concert boost

Travelodge has said strong regional demand for rooms across the UK helped to offset “softer trading” in London so far this year.

The budget hotel group however said that sites in the capital saw soaring trade close to Taylor Swift’s London concerts and major sporting events.

However, it saw weaker trade linked to Wimbledon due to poor weather and fewer midweek leisure visitors in London.

Travelodge boss Jo Boydell said consumer demand has been broadly “resilient” across the UK.

“The UK regions have been really solid this year but London has been impacted by a lower event schedule year-on-year,” she said.

“For the bigger events we have had, such as Taylor Swift and big sporting events, we have performed really well.

“The return of the football season has been really good as well, with that supporting a lot of regional hotels.”

Nevertheless, the group said it was witnessed “encouraging trends” for staycation demand across the UK, with positive trading over July.

It came as the firm reported that revenues grew by 1.7% to £486.7 million for the first six months of 2024, compared with the same period a year earlier.

Ms Boydell added: “UK revenues in the third quarter to date are modestly below 2023 levels, but we were encouraged by improving trends during July, with UK revenues ahead of 2023 in that month.

Forward bookings are also positive, with booked revenue to the end of the year ahead of 2023 levels at this point, driven by strong event demand.

She said: “Our strong financial position, combined with our affordable proposition and diversified, increasingly well invested hotel network, position us well for long-term growth.”

The company said it has also witnessed improved sales across sites where it has invested in hotel refits, with 50% of its room estate set to have been refurbished by the end of the year.

However, the company said the fact that it has been unable to host customers while rooms are being refurbished has knocked the group’s earnings.

Travelodge reported an underlying group earnings of £94.4 million for the six-month period, after adjusting for £12 million in advertising spend and investment.