Travelodge UK has promoted managing director Guy Parsons to chief executive as the budget hotel chain seeks to maximise growth ahead of a potential sale.

As part of a top level reshuffle at the Thame-based company former chief executive Grant Hearn has become executive chairman.

Mr Hearn had been in the position since 2003.

Commenting on his ambitions for Travelodge Mr Parsons said: “Despite the recession we have continued to grow during the last 12 months.

“More importantly, we have created an exceptional platform for growth that we can exploit now that the downturn is fading.”

Changes at the hotel chain will also see Keith Hamill retire from his role as non-executive chairman. He will remain on the board as deputy chairman and continues to hold a significant investment in the company.

Travelodge UK is owned by Dubai International Capital (DIC), the investment arm of the Middle East state, but is considered by analysts to have fallen behind its business plan in the wake of the recession.

The chain operates budget hotels in Europe, principally in the UK, but also in Spain and the Irish republic.

New executive chairman Grant Hearn said: “The last seven years have been very exciting.

“We have doubled the size of the business and more recently, delivered very resilient performance in one of the most severe recessions on record. 

“Now we are recovering from this challenging period, it is time for the next phase of development for this company.”

Parsons will head the day to day running of Travelodge and Grant Hearn will focus on the company’s growth opportunities, the group confirmed in a statement

The changes come in to effect on July 1st.

The budget hotel market is forecast to double in size over the next two decades, with Travelodge planning to add around 40,000 rooms during the same time period.

“As our business moves close to securing our ten millionth customer and its 400th hotel, we will focus on the future needs of the consumer and place our own people at the heart of our business,” added Mr Hearn.

“With a very strong board and the recent additions to the executive team, I believe that this company has never been better placed for the future.”