Compass Group, that acquired Travelodge from Granada last year, sees franchising as a viable extension that builds on its status as a leading UK budget hotel brand. The company is not yet naming potential partners.

Simon Turl, Travelodge's managing director said the company had been in discussion over the last few months with several hotel operators exploring a number of options:

'Franchise is just one way we can grow and it's a natural progression for the Travelodge brand as it will enable us to extend the portfolio while still protecting standards.'

Travelodge has 213 hotels in the UK and over 12,000 rooms and has another ten properties currently under development. It intends to add 5,000 rooms to its portfolio in the next five years.