Travelodge UK

Travelodge Hotels Limited
Type Private
Industry Hospitality
Founded 1985 (1985)
Headquarters Thame, England, UK
Number of locations 456 hotels in UK[1]
11 hotels in Ireland[1]
3 hotels in Spain[2]
Area served United Kingdom
Republic of Ireland
Spain
Key people Keith Hamill, Chairman
Grant Hearn, Executive Chairman
Guy Parsons, CEO
Paul Harvey, Managing Director
Jon Mortimore, CFO
Products Hotels
Revenue £331.7m (2010)[1]
Operating income £153.5m (EBITDAR)[1]
£48.5m (EBITDA) (2010)[1]
Profit £27.0m (2010)[1]
Total assets £888.4m (net) (2010)[1]
Owner(s) Dubai International Capital LLP (ultimate controlling party)[1]
Employees 6,000 (full and part-time) (2011)[1]
Parent Endell Group Holdings Ltd (ultimate parent company)[1]
Website www.travelodge.co.uk

Travelodge Hotels Limited is a private company operating in the hotels and hospitality industry throughout the United Kingdom. Branded simply as Travelodge or Travelodge UK, it is the second largest in the budget hotel sector (behind Premier Inn) and third biggest hotel chain in the UK by number of bedrooms (31,600 as at 31.12.2010[1]). The company states it is "the UK's No.1 Branded Hotel Company"[1].

Travelodge Hotels Ltd is under separate ownership from the Travelodge chain of the United States.

Contents

Ownership

Forte

In the 1980s, Lord Forte bought the US Travelodge brand and established it in Britain. He attached them to many of his Little Chefs as Little Lodge before later rebranding them as Travelodges.

Travelodge was formerly a division of Forte Hotels, and was known as Forte Travelodge. Since then, it has become a company in its own right and has over three hundred Travelodge hotels, mainly located beside motorways and major roads, although more and more hotels are being opened in city centres. The first hotel was opened in 1985 at Barton-under-Needwood on the A38 near Lichfield, Staffordshire.

Granada

In 1995, it was bought by Granada, when the Forte Group (formerly Trusthouse Forte) underwent a very unharmonious hostile takeover. In 2001, when Granada de-merged (creating Moto), it became owned by Compass Group. In 2003, it was acquired by Permira under the name of TLLC Group Holdings Ltd (113 Little Chefs, owned by TLLC, were nextdoor to Travelodges), moving its headquarters from Toddington in Bedfordshire to Thame in Oxfordshire in June 2003.[3] In August 2006, it was sold to Dubai International Capital (based in United Arab Emirates) for £675m.

In mid-2010 Travelodge bought 52 Innkeeper's Lodge properties from the Mitchells & Butlers pub chain, leaving less than half the original number of Innkeeper's Lodge hotels.

Facilities

A new room design has been introduced in new buildings, and newly refurbished hotels; featuring a new colour scheme and LCD TVs. In most hotels, there are double rooms, family rooms and disabled rooms. All rooms feature en-suite bathroom, free tea & coffee. A charged for wi-fi internet connection is available at all hotels.[4]

Dining

Eating and drinking facilities vary at locations a great deal.

Some of the older roadside locations have nothing but the hotel itself and a petrol station, with no particular provision for meals. Some are located beside a Little Chef, although this is becoming less common (Little Chef and Travelodge were previously owned by the same company).

Many Moto service stations have a Travelodge attached, and some hotels may be close to a pub or family restaurant. In town and city centre locations, licensed 'Bar Cafes' within the hotel are common, serving both breakfast and evening meals.

Some hotels in the Republic of Ireland are next to a Metzo restaurant.

Many hotel sites are also located next door to a Harvester or Toby Carvery restaurant.

Commercial strategy

In 2004, it bought the Drury Lane Moat House hotel for £11m, and the London Farringdon and London Islington Thistle hotels.[5] In July of that year, it decided to sell 136 of its hotels for £400m, then lease them back.[6]

Travelodge UK also operate eleven hotels in the Republic of Ireland and three hotels in Spain.

80% of bookings are now made online.[7]

Booking policy

On 24 October 2006 the BBC One Watchdog programme highlighted Travelodge's policy of overbooking their hotels, turning guests away even when they have booked against a credit card.[8] When a whistleblower revealed that overbooking comes before anything else, Travelodge admitted to this practice and updated their website to confirm this. Guests who are found in this position are found accommodation nearby at no cost to them, but if no rooms are available nearby the reservation is cancelled and the customer is refunded to the payee's card. Travelodge say that overbooking is so more guests can make use of rooms that would otherwise be empty; however, the whistleblower programme contained footage of an internal Travelodge training video which stated that their business model required them to run all their hotels at maximum capacity, and that a 'last man standing' policy would ensure this always occurred. It's recommended to phone the hotel before your journey to ensure a room is reserved, else they will outbook you and your only know once arrival.

New building style

In 2008, Travelodge started a new building style, in which old shipping containers were stacked together in a metal frame and covered over to create the appearance of a regular hotel. The containers were then refurbished to the usual company standard.[9]

David and Jean Davidson's stay

In 2007, media around the world reported that David and Jean Davidson, a retired couple originally from Sheffield, stayed at a Newark, Worksop and a Grantham, Lincolnshire location for a combined total of 22 years, making the lodge their home.[10] The retired navy sailor and his wheelchair-using wife found the cost of their stay comparable with living in a house, but with the benefits of maid service and meals.[11] Following their departure, the lodge named their room "The Davidson Suite."

Complaints

If you have a complaint about anything, the managers are at work normally 7am or 8am depending on the hotel and most managers don't work on weekends. They are normally the only people who are trained to give refund via the PDQ machine.

Breakfast bags

For £4.50 (£4.05 online) one can buy a breakfast bag which will be delivered to the customer's room and left outside at the time he or she tells the receptionist on arrival. The bag contains corn flakes style cereal and UHT milk, orange juice, a lemon muffin, a croissant, jam, and a plastic knife.

Booking

The cheapest way for a room is to book 2 weeks in advance where you can get cheap rooms from £19, if you book within a week you can find rooms for about £29. If you need a room for the same day book it online where it can cost you £40-£50 where as if you was to book it in the hotel you could be looking towards £60-£90. The hotel price is always higher than the price online to get customers booking online.

References

  1. ^ a b c d e f g h i j k l Travelodge Hotels Limited, Report and financial statements for the year ended 31 December 2010, dated 13 June 2011
  2. ^ Through sister company, Travelodge Hoteles Espana SL (Spain), as reported in Endell Group Holdings Limited, Report and financial statements for the year ended 31 December 2010, dated 3 March 2011
  3. ^ "Compass sells Little Chef and Travelodge". BBC. 2002-12-18. http://news.bbc.co.uk/1/hi/business/2585967.stm. Retrieved 2008-02-19. 
  4. ^ WiFi available at all hotels now
  5. ^ "Press release: TRAVELODGE NOW OFFERS EVEN MORE LOW-COST CENTRAL LONDON HOTEL ROOMS - ROOMS RATES START AT JUST £45 IN CENTRAL LONDON - TRAVELODGE OPENS TRAVELODGE LONDON ISLINGTON AND TRAVELODGE LONDON FARRINGDON". Travelodge. 2004-03-29. http://www.travelodge.co.uk/press_releases/press_release.php?id=32. Retrieved 2009-09-14. 
  6. ^ http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article1717598.ece
  7. ^ 80% of bookings now online
  8. ^ "Travelodge". Consumer - Reports. bbc.co.uk. 2006-10-24. http://www.bbc.co.uk/consumer/tv_and_radio/watchdog/reports/holidays_and_travel/holiday_20061024.shtml. Retrieved 2007-06-18. "Watchdog researchers booked three rooms at a Travelodge in London. Each went to check in late at night but well within Travelodge's terms and conditions. All were told the hotel was full and that, despite their bookings, there were no rooms available." 
  9. ^ UK National News - Travelodge To Build Recyclable Hotel
  10. ^ Stokes, Paul (2007-09-12). "Telegraph". News (London: telegraph.co.uk). http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/09/11/nlodge111.xml. Retrieved 2007-10-03. "Pensioners David and Jean Davidson found living in a Travelodge hotel was a cheaper option than an old people's home and have never looked back." 
  11. ^ "Daily Mail". News. dailymail.co.uk. 2007-09-11. http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=480999&in_page_id=1770. Retrieved 2007-10-03. ""We have everything we need here - and the staff are like family now. We only have to walk across the car park for meals"" 

External links

News items