The accounts also reveal that S�amus McGowan and Richard O'Sullivan are continuing to acquire individual hotels from the chain, which they acquired for Euro22.5m in 2004.

The accounts for the chain's Northern Irish branch, Smorgs (Northern Ireland), show that the Brunswick co-ownership, a partnership co-owned by the two men, acquired the chain's Belfast hotel on 30 June 2006 for �1m (Euro1.47m).

The move follows the sale of two hotels by the chain's southern arm, Smorgs, to a partnership called Cooney, O'Sullivan and McGowan, also co-owned by the two men, for Euro2.39m in 2005. In both transactions, the partnerships leased back the hotels to the chain.

The accounts also reveal that Smorgs received a onceoff tax repayment of Euro469,675 in 2006, although no further details on the payment are contained in the figures.

Profits at Smorgs increased only slightly, from Euro1.611m in 2005 to Euro1.617m in 2006, due to a Euro1.1m rise in administrative expenses at the chain.

Profits at Smorgs (Northern Ireland) also rose only fractionally, coming in at �280,822 (Euro413,250), up from �278,378 (Euro409,654) the previous year, after administrative expenses there rose by almost 25%.

Travelodge Ireland operates eight hotels, including three in Dublin and one at Cork airport.