One of the UK and Ireland's biggest budget hotel operators is set to walk away from 49 of its hotels and write off £700m (€892m) of its debts under a controversial rescue deal.

Budget hotel chain Travelodge stepped up its expansion today with the addition of 52 hotels from pubs and restaurant group Mitchells & Butlers.

Travelodge today moved to capitalise on the rapid growth in the budget hotel sector by announcing plans to double in size over the next six years.