The budget hotel chain said the boost for the year ending December 2013 was largely driven by growth from the business travl market which now accounts for more than 50% of revenue.

Food and beverage sales also increased by 14% due to the upgraded breakfast offer while 19 new hotels during the period brings the total number to 543 with 40,847 rooms.

Revenue per available room (RevPAR) also grew by 2.5% to £39.34 while earnings before interest, tax, depreciation and amortisation grew by £5 million to £110.1 million

Travelodge chief executive Peter Gowers said: “The UK is still short of good quality low-cost hotels and notwithstanding the short-term economic uncertainty, we see considerable further potential to expand our network over the years ahead, and expect to open an average of 20 hotels each year over the next three years.”

“Clearly the macroeconomic picture remains uncertain and there are increased cost pressures from the national living wage, business rates and other regulated cost increases.

“However, our growing brand reputation and strong development pipeline position us well to benefit from the opportunities presented by businesses looking to reduce travel costs in uncertain times and leisure travellers opting for staycations as an alternative to higher priced foreign travel.”