Entrepreneur Sinclair Beecham has reportedly put the reigns on plans for a nationwide roll out of his flagship Hoxton Hotel in Shoreditch, East London.

Last October it was announced that more ‘luxury budget’ hotels would be opened in Edinburgh, Glasgow, Leeds, Bristol and Birmingham over the next four years, but it is now rumoured that the current economic downturn has dampened the Prét a Manger co-founder’s ambitious expansion plans, with all plans being put on hold.

Beecham has responded to the hearsay, explaining: “We’re doing what any business would do in the circumstances; we’re trying to decide what the right thing to do is in the current market and are taking a more cautious approach.”

The Scottish capital was set to host Beecham’s next Hoxton hotel in 2010. Subject to planning approval from the City of Edinburgh Council, work on the 200-bedroom hotel, as part of the proposed £40m mixed-use SoCo redevelopment in the Old Town, was set to kick off this year.

Earlier this week, in a marketing ploy aimed at combating the current economic downturn and seasonally difficult period for hotels, Beecham gave away 50 bedrooms completely free to lucky customers staying at the Hoxton tonight and tomorrow night, as a “gesture of thanks to its city clientele”.