Hotel chain Travelodge has benefited from belt-tightening Britons after reporting rising sales and profits in the first half of the year.
The group, which has more than 40 establishments in Scotland, saw revenue rise 8 per cent to £317.2 million in the six months to 27 June, while adjusted earnings grew by £1.3m to £43.3m.
The firm pointed to “economic uncertainty” in the UK, which has helped drive up demand for low-cost accommodation among holidaymakers and businesses. Travelodge has also cashed in on the trend for weekend city breaks.
Chief executive Peter Gowers said: “While the UK continues to face economic uncertainty, demand for budget hotels remains strong and more and more businesses are choosing the budget sector.”
However, the group also highlighted “significant” cost increases, citing the National Living Wage and operational burdens, although it added that it has successfully navigated these challenges.
Like for like revenue per available room was up 3.1 per cent, helped by the re-opening of one of its London hotels.
Gowers added: “Travelodge delivered strong revenue growth and has continued to outperform the midscale and economy market segment. Our focus on location, price and quality is paying off with another period of increased occupancy.”
The results mark a continued turnaround from when the group went through a major restructuring in 2012. It saw GoldenTree Asset Management, Avenue Capital and Goldman Sachs take control of the company via a debt-for-equity swap from Dubai International Capital.
In June, Travelodge said it was looking for a further 20 sites across Scotland after cutting the ribbon on its 44th establishment north of the Border. It officially opened its second site in Stirling, the city where it opened its first Scottish budget hotel, in 1986.