Budget brands Aldi and Travelodge have teamed up to take advantage of development opportunities arising as a result of the credit crunch.

In Middlesbrough and Newquay, Aldi, the German supermarket chain, and Travelodge, the budget hotel chain, are developing sites together into supermarkets and hotels.

In Newquay, Aldi’s 14,500 sq ft store will incorporate a Travelodge hotel creating a 74 bed hotel above to open in autumn 2009. At Middlesbrough, the Aldi is 16,700 sq ft with a 55 room hotel to open at the end of November adjacent to the store.

In line with each company’s normal business practices, Aldi has the freehold of both sites and Travelodge will take a lease.

Travelodge will invest £2m in Middlesbrough and £2.9m in Newquay.

Paul Harvey, managing director for development at Travelodge, said: ‘The credit crunch is freeing up sites for development that previously would not have been viable for either of us.

'With the budget sector of the hotel industry set to grow to 30% of the market, and Aldi aiming to develop 1,500 stores over the next five years, these are exciting times for companies that are committed to driving down costs for customers.’