Travelodge teams up with pub trade

Budget hotel chain Travelodge is undertaking a £100 million, 36 site expansion programme in partnership with some of the UK’s leading pub companies.

Already co-located with pub companies on 15 bespoke developments across the UK, Travelodge is now working with Greene King, JW Lees, Marston’s, Mitchells & Butlers (M&B) and JD Wetherspoon to find further development opportunities across the country.
 
Recognising the recent upturn in fortunes in the UK pub trade, a Travelodge statement said: “By working together the hotel brand can capitalise upon the opportunities that the renewed development activity of the pub companies provides.”
 
The pub companies’ expansion plans follow the continued desire of consumers to eat out despite the recent economic troubles.

Ralph Findley, chief executive of Marston’s, announced that “70% of income is people coming into dine” when giving their recent results, while Greene King chief executive Rooney Anand said recently: “Food is a particular driver of growth. Food sales are now 39% of total revenue…that figure will continue to grow.”

A number of large pub operators have announced expanion plans recently. Greene King is seeking to add 200 pubs to its estate by 2015 in order to reach 1,100 outlets. Brands include Hungry Horse and Belthaven, primarily located in Scotland.
 
Marston’s has said it will add to its existing 500 sites by opening 20 new pubs in 2011 and 25 in 2012, with brands including Pitcher and Piano and the eponymous Marston’s Inns.
 
JD Wetherspoon is committing to opening 50 new sites a year for the next decade, while M&B stated it aims to open 50 sites this year and 70 hotels in 2012. With 15 brands, including Harvester, Toby Carvery and All Bar One, M&B currently has 1,600 restaurants and pubs in the UK.

 
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”.

Brigid Simmonds, chief executive of the British Beer & Pub Association, added: “While pubs have faced tough times in recent years, this is a great example of how they are fighting back. Pubs are perfectly placed to provide the hospitality at sites next to hotels.

“Pubs now serve more than one billion meals each year and are diversifying in many ways to serve their local community. Innovation like this is a key ingredient in making a success of new pub openings – and it’s a success story we should be highlighting.”
 
The initiative also follows the integration by Travelodge of 52 Innkeepers Lodge Hotels that the company acquired in July 2010, all of which have an M&B pub on site.
 
Alan Lodge, 19.04.2011