Two of the leading budget brands operating in the UK, Aldi and Travelodge, have united to enable them to take advantage of development opportunities arising as a result of the credit crunch.
In Middlesbrough and Newquay, the two firms are developing sites together into supermarkets and hotels, helping both businesses to meet their ambitious growth targets and develop their growing market share.
In Newquay, Aldi has 14,500 sq ft store with Travelodge creating a 74 bed hotel above. At Middlesbrough, the Aldi is 16,700 sq ft with the hotel adjacent consisting of 55 rooms. In line with each company's normal business practices, Aldi has the freehold of both sites and Travelodge will take a lease.
Travelodge will invest £2 million at the Middlesbrough site and £2.9 million in Newquay; 20 staff will be recruited at each location.
The Middlesbrough Travelodge will be open at the end of November, and Newquay is due to open in autumn 2009.
Paul Harvey, Managing Director for Development at Travelodge, said:
"By developing sites together with Aldi, we are sending out a clear signal that the budget sector in the UK is going to make the most of the opportunities presented by the economic downturn.
"The credit crunch is freeing up sites for development that previously would not have been viable for either of us. I am sure that we will continue to work closely together over the forthcoming years.
"With the budget sector of the hotel industry set to grow to 30% of the market, and Aldi aiming to develop 1,500 stores over the next five years, these are exciting times for companies that are committed to driving down costs for customers".
For further information please contact:
Nick Dines 0l844 358698
About Travelodge
The first budget hotel brand to launch in the UK in 1985, Travelodge now operates 339 hotels in the UK. There are also - eight in Ireland and three in Spain, bringing the total to 350. Travelodge plans to grow its estate to 70,000 rooms (approximately 1000 hotels) by 2020.
Six and a half million people stayed with Travelodge last year and 87% of reservations are currently made online at travelodge.co.uk, where room rates start at £19 a night. The chain employs 5,000 staff and is owned by Dubai International Capital, who acquired the organisation from Permira in 2006.
About Aldi
Aldi currently has 375 UK stores and is looking to open another 1,500 over the next five years. The first UK store was opened in 1990.
Aldi was started by Karl and Theo Albrecht in Germany in 1962. The company is the 24th largest retailer in the world, with an annual turnover of almost $50bn.
Aldi has over 5,000 stores worldwide.