Budget hotel chain Sleeperz has appointed property consultants Robinson Low Francis (RLF) to help progress plans for the development of a 98-room hotel in Newcastle.

Preparatory work is now underway on the six-storey property in the heart of the city, which is due to open in October 2011 and will become the group's second site alongside its inaugural hotel in Cardiff. The Newcastle hotel will be located on the site of the former Parcel Works at the city's railway station and is in line with Sleeperz's strategy of occupying "irregular shaped sites" near transport hubs.

RLF has been appointed by Sleeperz to act as agent and quantity surveyor on the scheme, which also aims to capitalise on the increasing trend in UK 'staycations' and efforts to attract more inbound tourists. RLF partner Paul Chesworth said: "As the hotel construction sector continues to pick up, particularly with budget hotel market, this is a great opportunity for RLF to strengthen its expertise."

In addition to the new Newcastle property, Sleeperz is aiming to expand its portfolio in Liverpool, Birmingham and Manchester after securing £7m worth of investment from investors Andre Hoffman and Connection Capital. Sleeperz chief executive David Myers said: "The finance we have secured will not only fund the Newcastle hotel development, but also provide working capital for the further expansion we have planned."