Travelodge has seen underlying revenue jump by a third as budget-conscious business customers have been returning to low-cost hotels.

The chain of 595 hotels, including those in Cheltenham, Gloucester, Tewkesbury, Cirencester and Stonehouse, saw an "encouraging recovery" in white-collar demand in the period up to the Queen's funeral.

In the third quarter the chain said underlying revenues jumped by 33.5 per cent versus 2019 to £278.6 million.

The Times reported that Travelodge had been hit by inflationary pressures but were "well controlled" and it had delivered strong trading in the first few weeks of the final quarter.