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Budget hotel chain Travelodge is developing a new model for expansion – the Metro hotel.
With between 20 and 40 rooms, the new Metro hotels will allow Travelodge to fit into smaller buildings, such as office blocks.
It also means the hotel group can open smaller properties in more expensive locations, where the price would otherwise be impractical for the Travelodge model.
The group hopes to have 100 Metro Travelodge hotels in the UK by 2020.
Areas earmarked for the new strategy include the City of London and the London Borough of Westminster.
Guy Parsons, Travelodge’s CEO, said the concept would allow Travelodge to open hotels where other hoteliers can’t develop.
“Our desired locations will include: office buildings, business parks, major cities, popular holiday destinations and within London’s affluent Boroughs,” he said.
“The ‘Metro’ model will also allow us to expand in our top performing locations where there are few 60-plus room sites available.”
Downsizing hotel building requirements will open up hundreds of development opportunities for Travelodge, said Parsons.
“The Metro hotel model will allow the hotel chain to open properties near to existing popular Travelodge’s in locations where larger development sites are either not available or have unrealistic price expectations,” he added.
The Metro style hotels will sit under the Travelodge brand and will have rooms based on the standard double Travelodge room (15sqft).
Run by existing managers of nearby larger Travelodge hotels, the Metro hotels will also provide training opportunities for trainee managers.
The decision to adopt the new strategy follows the opening of a Metro style 43-room Travelodge in Edinburgh, that has become one of the company’s top performing hotels.
The conversion of 52 Innkeeper’s Lodges into Travelodge hotels, following their purchase from Mitchells and Butlers in July 2010, has also been a factor.
The majority of the acquired Innkeeper’s Lodges have less than 40 rooms, but have proven to be “highly profitable” additions for Travelodge, said Parsons.
He said: “Following the success of our Edinburgh ‘Metro’ prototype hotel and the conversion of 52 Innkeeper’s Lodges to the Travelodge brand, we have discovered just how profitable smaller hotels can be for us.”