Travelodge and The Gym Group announce partnership

Low-cost fitness operator The Gym Group is to partner budget hotel chain Travelodge as part of plans to find 10 new co-location sites in London and the south east.

The two companies will invest a total of £70m in the venture.

As part of its expansion plans in London, The Gym Group has set itself the target of 20 gyms in the capital by the end of 2013.

Meanwhile, Travelodge is seeking to secure deals for an additional 50 hotels (5,030 rooms) by 2020.

The deal is an extension of an existing partnership between the two companies - Gym Group currently operates four clubs at Travelodge hotels (in Plymouth, Guildford, Waterloo and Wembley).

Travelodge's managing director for development, Paul Harvey, said: "The four co-locations with The Gym Group have worked enormously well for both parties so it makes absolute sense for us to look for, and secure, sites together. This really helps us with our growth plans for London and the south east.

"Given the space requirements of both companies, as well as our compatible business models, it really is the perfect fit: The Gym Group on the ground or lower ground floor and Travelodge on the floors above."

John Treharne, CEO of The Gym Group, added: "The increasing popularity for budget alternatives across a number of sectors reflects the wider consumer market's demand for value. Our expansion plans are ambitious; we will have 32 sites open by January, and look to continue the same level of growth through 2013.

"We welcome any opportunity to co-habit with likeminded companies. It allows both parties to challenge the existence of their mid-market competitors, and ultimately offers the consumers better value for money."