Travelodge makes £5m price cuts

Travelodge currently has 350 hotels across the UK

Budget hotel chain Travelodge has announced a £5m package of price cuts for the rest of 2008.

It said its average room rates in 15 UK cities would fall by an average of 10% for the rest of 2008, and is selling some rooms for next spring at £9.

Owned by Dubai International Capital, Travelodge currently has 350 hotels in the UK and 11 overseas.

The UK hotels sector is under pressure because of the downturn, and Travelodge has been buying out struggling hotels.

"We are now seeing many more hotels coming onto the market due to a more severe financial climate," managing director Guy Parsons said.

Recent PricewaterhouseCoopers figures show hotel insolvencies rose 150% between the end of 2006 and October 2008.

Travelodge currently has about 5,000 employees, and 6.5 million people spent a night at one of its hotels last year.