Travelodge has confirmed it will channel £100 million into a 36 site expansion programme in partnership with the UK’s resurgent pub companies by 2015.
Already co-located with pub companies on 15 bespoke developments across the UK, Travelodge is now actively working with Greene King, JW Lees, Marston’s, Mitchells & Butlers (M&B) and JD Wetherspoons to find further development opportunities across the country.
In recognition of the recent upsurge in activity from the pub sector, Travelodge has for the first time devised a bespoke development strategy to partner up with a wide range of pub companies.
By working together the hotel brand can capitalise upon the opportunities that the renewed development activity of the pub companies provides.
The expansion plans of the pub companies come on the back of consumers continuing to eat out despite the economic conditions.
For instance, Ralph Findley, chief executive of Marston’s announced that “70 per cent of income is people coming into dine” when giving their recent results.
Also, Greene King’s chief executive, Rooney Anand, said recently: “Food is a particular driver of growth.
“Food sales are now 39 per cent of total revenue that figure will continue to grow.”
Paul Harvey, Travelodge managing director for Development, said: “The pub companies have noticeably stepped up their development plans over recent months and in many parts of the country their target locations correspond with ours.
“We have been contacted by all the major players in the market and we are now pro-actively seeking out sites with them.
“A combined hotel/pub development is attractive to banks and funders, making the development process a lot quicker than it otherwise may be”.