21st February 2007

Travelodge, the UK's leading budget hotel chain, today announced the unconditional exchange of contracts on a new hotel development site at St. James' Park, Newcastle which is set to create 35 new jobs. The 167-room hotel will be located at Strawberry Place, Gallowgate, Newcastle-upon-Tyne, NE1 4 and will represent a £12 million investment.

The development lies to the north of Gallowgate, immediately opposite St James' Park home of premiership side Newcastle United and just two minutes' walk from Eldon Square Shopping Centre and China Town. The development benefits from an on-site Metro Station and is at the head of the St James' Boulevard which is the main route into the city from the A1(M).

The new hotel will accommodate travelling football fans from across the country as well as the millions of tourists that regularly visit the bustling Geordie city.

Planning has been approved by Newcastle City Council and the hotel, to be built by developer Hanro Limited, is expected to open in 2008.

Tony O'Brien, Travelodge's Development Director said: "We are very excited about this new site, its directly opposite St. James' Park and will complement our existing hotel in the city centre perfectly.

"As part of our aggressive growth plan, we aim to open 3,000 rooms in 2007 and a further 3,000 per year until 2010. Newcastle St James' Travelodge will play an important role in ensuring we achieve this goal."

The new hotel will add an extra 167 family and double rooms to the area, priced from just £15 a night. Best deals can be found via www.travelodge.co.uk

Crawford Cole of Smith Cole Wright, Travelodge's retained agent for the North East of England, acted on Travelodge's behalf.

Ends

For more information contact:

Shula Gillam, PR Executive - 01844 358703

Notes to editors:

Travelodge has approximately 300 hotels throughout the UK. These are conveniently located in most major UK city centres, airports and roadside.

Travelodge offers an online booking service at www.travelodge.co.uk and also via telephone on 08700 850 950.

Travelodge room rates start from just £26 per room, per night. (£26 room rates are subject to availability and can only be booked online)

Travelodge was the first budget brand to launch in the UK in 1985.