Budget chain Travelodge has written to 124 local councils seeking to work together to finance the building of new hotels.

The move follows co-partnership deals struck with local authorities for hotels in Aylesbury and Eastleigh.

The chain says it is in advanced negotiations with five other councils for developments utilising land and assets owned by the councils.

Through the partnership, councils borrow money from central government via the Public Works Loan board at a fixed low interest rate and regenerate surplus land that they own by building a Travelodge hotel as either a standalone project or as part of a mixed-use development.

This then creates jobs and boosts the local economy while also providing a substantial return of profit for the council, according to Travelodge.

The Aylesbury Travelodge, which officially opened last week, is the first branded budget hotel to open in the town centre. The 81-room property has been funded by Aylesbury Vale District Council as part of a £18 million regeneration project which includes a Waitrose supermarket, a 270-space multi-storey car park and the hotel.

Aylesbury Vale District Council borrowed funds from the Public Works Loan Board, a division of HM Treasury at a fixed low rate of 4.5% to fund the project,

The rental deal agreed between Travelodge and the District Council, plus the income from the other site occupiers means the council is set to generate a double digit return on its investment.

The company opened a hotel in Eastleigh earlier this year in a deal which also came about through a partnership with the local authority and was funded via borrowing via the Public Works Loan Board.

Travelodge managing director for property Paul Harvey said: “We are the first UK budget hotel brand to work with local councils on co-partnership developments.

“The deals we have done so far have provided a great investment opportunity for both parties and as a result of this innovative calibration, we have today written to 124 other local authorities across England and Wales to see if we can work with them on a similar scheme.

“Both Eastleigh and Aylesbury Vale are forward-thinking, innovative and enterprising local authorities. Both councils have recognised the opportunity to add new facilities into their towns whilst making a good return on their investment.”