The Gherkin office building in London

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PA wire

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Travelodge plans to open a brand new resort within the Metropolis of London in 2018

Following a £100m modernisation programme, price range resort chain Travelodge is now attracting extra customized from enterprise than leisure guests for the primary time.

The agency says it should open 60 lodges over the subsequent three years, together with one in central London.

In 2012, the chain was purchased by two US hedge funds after its money owed almost dragged the corporate underneath.

Working income for 2016 are up £5m to £110m.

“This yr simply gone, we have overtaken [revenue from] leisure clients with enterprise clients for the primary time… since our restructuring,” mentioned Travelodge chief govt Peter Gowers.

“Traditionally, our combine tended to be about 55% leisure, 45% enterprise. For the reason that funding in high quality, we have had much more success at profitable over not simply small companies, which you would possibly anticipate, but in addition round half the FTSE 100 use Travelodge indirectly, form or kind.”

Travelodge has began work on a brand new resort within the Metropolis of London, close to the landmark workplace constructing identified colloquially as “the Gherkin”. It’s anticipated to open in 2018.

Mr Gowers mentioned he believed there was room for additional enlargement, as a result of whereas within the UK, about one in 5 lodges is a branded price range resort, whereas within the US, the determine is one in three and in France, it’s one in 4.

Goldman Sachs, Avenue Capital and GoldenTree Asset Administration, the companies that took management of Travelodge in 2012, weren’t anticipated to carry on to the corporate long-term after its restructuring.

Mr Gowers, who turned chief govt in 2013, mentioned that the agency’s “present shareholders are usually not pure long-term holders of a resort enterprise”. However he gave no indication that any change of possession was presently into consideration.

Travelodge operates greater than 500 lodges within the UK, Eire and Spain.