Budgeting for expansion

Here is a really good example of two businesses looking to exploit opportunities from the economic downturn.

Travelodge - which is owned by Dubai International Capital - has announced an fresh expansion plan which fits into its long-term aim to grow to over 70,000 rooms in nearly 1000 hotels by 2020 and to be the biggest hotel operator in London by the time the Olympics arrives in 2012.

And as part of the organic growth strategy, Travelodge is teaming up with the discount food retailer Aldi to develop sites together into supermarkets and hotels. Notably two of the initial projects in this joint venture are in Middlesbrough (on Teesside) and in Newquay in Cornwall - both in regions where per capita incomes are substantially below the national average.

Both businesses are taking advantage of the collapse in demand for commercial and residential property - which is freeing up land for others to invest in.