By Jonathan Davies

UK hotel chain Travelodge has reported a 63% rise in profits in 2014.

The budget chain reported profits of £66.2 million on revenues of £497.2m, a 14.9% increase.

The news comes as Travelodge's owners are reported to be preparing to sell the hotel chain for £1bn.

Goldman Sachs, Avenue Capital and GoldenTree Asset Management took over Travelodge when it nearly collapsed in 2012.

Travelodge chief executive Peter Gowers told BBC Radio 5 Live's Wake Up To Money: "There's probably never been a better time to run a value hotel business than now because the value hotel sector is huge. Britain is becoming a nation of value shoppers."

On the subject of the potential sale, Mr Gowers said the trio of owners were "not natural long-term holders of the business".

"I think you'd expect them always to be thinking about ways to realise value from their shareholdings, but for now we stay focused on running the business we have got", he said.