Gill Oliver talks to Peter Gowers, chief executive of Oxfordshire-based chain Travelodge
When Peter Gowers was a law undergraduate at Keble College, his parents had problems finding somewhere affordable to stay when they visited.
Fast forward a couple of decades and he is intent on solving that problem.
As chief executive of Oxfordshire-based budget hotel chain Travelodge UK, he is overseeing a £100m national expansion, in which the county will play “a key part”.
Sixty jobs will be created when two hotels open in Abingdon Road and Bicester next year and his team is searching for three more sites in Oxfordshire, with the promise of another 90 jobs.
Mr Gowers , who visited the Pear Tree roundabout services Travelodge this week to mark the firm’s 30th anniversary, pointed out that the new Abingdon Road hotel, which will sleep 83 and opens next spring, is just a couple of streets away from his student-days home in Lake Street.
And while at pains to say he is working “constructively” with the local planning authorities, he was adamant Oxford needs more budget hotels.
He warned: “You can’t keep the city of Oxford only for those who have lots of money and can afford to stay in the Randolph.
“I have had first-hand experience of it because my parents couldn’t find anywhere to stay when they visited me and they were not in a position to afford the Randolph.”
Mr Gowers wants to build Travelodge hotels in Oxford city centre, such as near the station or at the top of Cowley Road.
But he is under no illusion just how much of an uphill struggle that might prove.
He added: “It’s difficult to find sites here. There is a challenge for Oxford city and county councils to strike the right balance between presenting Oxford as a heritage site and keeping up with the times.”
Apart from the 197-room Travelodge at Pear Tree roundabout, which employs 37 staff, the firm also has hotels in Burford, Bicester, Thame and Wheatley.
All five have been upgraded in the past two years, at a total cost of £1.5m and the results, Mr Gowers, says can be seen in increased revenue, including at Pear Tree, where sales are up by 20 per cent year-on-year.
The cash injection is courtesy of the Travelodge’s owners GoldenTree Asset Management, Avenue Capital Group and Goldman Sachs, who rescued the chain in 2012, after it reached near collapse.
Since then, the firm, which has been based in Thame since 2003, has seen an astounding turnaround in fortunes, with a 60 per cent rise in profits and revenue which was up by 15 per cent. This Lazarus-like recovery has been accomplished, says Mr Gowers, mainly by “focusing on the customer”.
He cites the example of replacing all beds with top-of-the-range ones and has even used his insider knowledge as a father-of-two to make life easier for guests.
Previously, family rooms included a sofa bed which could be converted into a double bed for two children to sleep on.
It was Mr Gowers’ idea to swap them for two single truckle beds that slide under the main double bed when they are not in use.
He explained: “We have an 11-year-old and a 12-year-old and the first thing you do as a parent is build a sort of ‘Berlin wall’ of pillows down the middle of the double bed to separate them and stop them fighting.
“That was why I was keen to get rid of the sofa beds and put in separate truckle beds instead.”
Another example of moving with the times and listening to the customer may be seen when the new hotel in Bicester’s Franklins Yard development, which will accommodate 53, opens next summer.
Rooms may include noodle kettles to cater for the rise in Chinese guests drawn to the county by Bicester Village, Blenheim Palace and Oxford University.
Mr Gowers said: “The Chinese segment is one of the fastest growing in our business and we have to adapt our cities in terms of language and transport.
“We found some of our Chinese guests were using the kettles to cook noodles, so are considering putting noodle kettles in the rooms in London and will do the same in Bicester.
“We will also make sure more things are translated into Mandarin.”
Graduation is traditionally the busiest time for the chain’s Oxfordshire hotels but its biggest growth is coming from corporate business, an area where revenue has leapt four-fold.
And he says the recession has helped budget chains such as Travelodge, as many firms now expect employees to spend £50 on a hotel room, rather than £150.
He joked: “When I go back to open Abingdon Road, maybe I should bring my mum and dad along.”
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