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Travelodge to expand

Budget hotel chain Travelodge has announced plans to build 55 new hotels in seaside resorts to capitalise on increasing numbers of people in the UK holidaying at home.

The company said it would spend £150 million on developing the new sites, at an average of nearly one a month up until 2015.

Locations of new premises identified so far include Blackpool, Weymouth, Newquay, Bournemouth and Scarborough.

The Travelodge chain plans to have around 1,000 hotels by 2020.

Chief executive Grant Hearn said: "If ever there was a time to win back the Brits that have been tempted abroad by the budget airlines, it is now.

"Soaring air fares, an overpowering Euro and the credit crunch is changing holiday habits this summer and maybe for good."

CBI director general Richard Lambert added: "The weakness in sterling and improvements in the product offering should make the UK look a more attractive destination for foreign and domestic citizens alike."