Budget hotel company Sleeperz has secured £7m of new funding and revealed ambitions to grow the business into a 10-strong chain by 2015.
The equity injection, which has come from existing investors and new backer Connection Capital, will be used to launch Sleeperz site number two in Newcastle in 2011.
Full construction of the 98-bedroom hotel will start this October, and the company has another five sites earmarked for development.
Heads of terms have been secured for five more sites next to mainline rail stations, including Liverpool, Birmingham and Manchester.
David Myers, chief executive of Sleeperz Hotels, said: “Raising finance is very tough in this market, and to secure £7m of investment is an exceptional achievement, particularly for a hotel business of our size.”
The Sleeperz brand, marketed as a “compact lifestyle” offer, was launched 18 months ago with the opening of site number one in Cardiff.