Budget hotel brand Travelodge is looking to expand in Spain to take advantage of a “significant gap” for lower-priced properties.
Travelodge has announced plans to take over the existing 78-room NH Villa de Coslada hotel in Madrid, as well as appointing investment specialist Aldaba Partners to help the chain grow its portfolio in Spain.
“At present, the Spanish hotel market is dominated by independent hotel owners, franchise and management agreement operators and shorter leasehold operators,” said Travelodge in a statement.
“However, our research showed that investors are increasingly looking for stable long-term income streams in support of Spain’s growing tourism industry. This fits well with Travelodge’s traditional long-term fixed lease model, as used in the UK.”
Travelodge, which already has five properties operating in Spain, said it was looking to open hotels in cities such as Barcelona, Madrid, Alicante, Bilbao, Granada, Malaga, Palma, Seville and Valencia.
The hotel firm, which has around 600 hotels in the UK, Ireland and Spain, will rename its latest Spanish property as Travelodge Madrid Coslada Aeropuerto. It will be Travelodge’s third hotel in Madrid. The chain also already operates two hotels in Barcelona and one in Valencia.
Steve Bennett, Travelodge’s chief property and development officer, said: “The Spanish hotel market is growing at pace with demand exceeding supply and we want to take this opportunity to take the Travelodge brand to new business and leisure locations across Spain.”
Travelodge has acquired a 20-year lease to operate its latest hotel in Madrid, which will undergo refurbishment as a “budget-luxe” property in the coming months. The property will remain open during the renovation process.