Travelodge Annual Profit Rises 30% Following London Expansion
By Amy Wilson
March 17 (Bloomberg) — Travelodge, the U.K. budget hotelier owned by Dubai International Capital LLC, said profit rose 30 percent in 2007 after more properties opened in London.
Earnings climbed to 55.8 million pounds ($112 million) before interest, taxes, depreciation and amortization from 42.8 million pounds in 2006, the company said today in an e-mailed statement. Sales gained 20 percent to 243.8 million pounds. Travelodge does not report net income.
The hotelier opened 23 new outlets during the year, according to the statement, raising the total number to 330. Dubai is in talks to merge Travelodge with Whitbread Plc’s Premier Inn chain, the largest U.K. budget hotel operator, the Sunday Times reported yesterday, without citing anyone. Whitbread has said the country’s economy lodging market may double within five years.
“We are looking forward to hitting record customer numbers for 2008,” Travelodge Chief Executive Officer Grant Hearn said in the statement. The company plans to open 44 U.K. hotels this year and aims to open 100 Spanish outlets by 2020.
Premier Inn has 500 U.K. hotels.
Last Updated: March 17, 2008 03:21 EDT