Travelodge invests in the seaside

The budget hotel chain Travelodge is to spend £150m opening 55 new hotels in British coastal towns by 2015.

The first locations - Blackpool, Weymouth, Newquay, Bournemouth and Scarborough - will be opening in the next 12 months.

Travelodge is predicting 30% like-for-like sales growth in its 30 coastal properties in July and August this year as more Britons holiday in the UK.

The news came as Pontins said summer bookings were up 10% on last year.

The holiday camp company said that the strength of the pound against the euro and rising fuel surcharges from airline were big factors in persuading cash-strapped consumers to holiday in Britain instead of taking flights to European destinations.

Pontins, which was taken over in March by the investment company Ocean Parcs, also said it had seen a 2% rise in sales so far this year.

"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," said Richard Lambert head of the CBI business organisation.

In November, Travelodge announced plans to open 100 hotels in Spain, partly to appeal to Spanish customers, but also to cater to British travellers.

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