Travelodge has announced plans to expand and open 60 new hotels in the UK, including one in central London.
The hotel chain has said that it will expect more business in the wake of the Brexit vote as the fall in the pound will lead to more people having ‘staycations’ in the UK.
Travelodge reported on Monday that they have seen an almost five percent rise in annual pre-tax profits, achieved by a modernization and cost-cutting programme. In 2016, pre-tax profits were £110 million, while in 2015 profits surged by 63 percent.
“Our 2016 results mark another milestone for Travelodge.” said Peter Gowers, chief executive of the hotel chain.
“We continue to focus on offering great value for money and have seen record growth from business customers, who now account for more than half of our sales.
“The UK is still short of good quality low-cost hotels and notwithstanding the short-term economic uncertainty, we see the considerable further potential to expand our network over the years ahead, and expect to open an average of 20 hotels each year over the next three years.
“Clearly the macroeconomic picture remains uncertain and there are increased cost pressures from the national living wage, business rates and other regulated cost increases.” he added, in reference to the referendum in June.
“However, our growing brand reputation and strong development pipeline position us well to benefit from the opportunities presented by businesses looking to reduce travel costs in uncertain times and leisure travellers opting for staycations as an alternative to higher-priced foreign travel.”
Travelodge plans to create over 500 jobs annually over the next three years. They currently have 500 hotels in the Ireland, Spain and the UK.
The hotel has already started building the new hotel in the City of London. It is expected to open in 2018 and will be located near the Gherkin.