Entrepreneur Duncan Bannatyne has announced he will be investing £15m into his hotel business to fund five new hotels, the first of which will open in Durham on Wednesday (14 February).

The hotels will adopt a pricing system similar to that of budget airlines – meaning that customers who book in advance will receive reduced rates – contrary to the norm in the hotel sector, where people booking later often get cheaper prices.

"Affordability is the key nowadays," said Bannatyne. "Customers who travel extensively lose out when booking hotels in advance but with the new early-booking system, business travellers who book early can take advantage of the low prices."

The Durham hotel will have 50 twin rooms, each with an en-suite bathroom, free wi-fi broadband access and wall mounted LCD televisions with digital satellite channels and guests will be able to use the Bannatyne Fitness site adjacent to the hotel at no extra cost.

The four other sites will be announced throughout the year. Details: www.bannatyne.co.uk