A spokeswoman for Premier Lodge explained why S&N was investing in the chain at such a time. She said: 'Premier Lodge is a growth brand to S&N. The budget market is booming, and despite the sale it is very much business as usual.'Premier Lodge is the third-largest budget hotel chain in the UK, with more than 8,000 bedrooms.

The new hotels will add 1,300 bedrooms in key city centres such as Edinburgh, Manchester, Plymouth, London (King's Cross), Southampton and Heathrow.Bob Ivell, chairman and managing director of S&N Retail, said: 'Our plans over the next year for this brand are ambitious and demonstrate further proof of our continued commitment to adding good-quality hotels to our estate.'