A TEESSIDE hotel is looking to increase revenues by more than £1m this year after a £3.5m revamp.

The Sporting Lodge, in Middlesbrough, has opened its new Escape Zone leisure club, a move it hopes will help push up annual income from £1.6m to £2.75m.

The 136-bedroom hotel, which was bought by the Sporting Lodge group from Holiday Inn in 2004, will be developed further next year, with the construction of three all-weather floodlit sports pitches and a golf driving range.

Kevin Clark, marketing manager at Sporting Lodge, said the revamp was already showing signs of having a positive effect on the business.

"The refurbishment was essential to improve what we offer at Sporting Lodge, both to our business and leisure customers," he said.

"Bedroom occupancy has increased to 70 per cent since the refurbishment and we have extra revenue through membership of the leisure club.

"There has been a marked increase in the business travel sector, while our leisure sales have always been strong, particularly with our programme of entertainment.

"That growth will continue with the development of the sports pitches and driving range. Our aim is to be a premier choice for business and leisure travellers."