Travelodge, the British budget hotel chain, is widening its presence in Spain and has opened five new hotels across the country. The new properties is part of the company’s strategy to grow its existing portfolio in Spain.
The five new hotels (in Alicante Puerto, Barcelona del Valles, Madrid Alcala de Henares, Malaga Aeropuerto and Murcia) add a total of 635 rooms to Travelodge’s Spanish portfolio. The properties mark Travelodge’s debut in Alicante, Murcia and Malaga and add to its existing estate in Madrid and Barcelona.
The hotels joined Travelodge on May 31, following the recent acquisition from Louvre Group, which helped the British hotel chain double its estate in Spain. Travelodge announced in April that it had acquired six hotels from Louvre Hotels, totaling 773 rooms. The hotels were branded Hotel Campanile, with five acquired on a freehold basis and one would be acquired on a long leasehold.
“Each location is carefully selected to suit the needs of the modern business and leisure traveller and we look forward to welcoming our guests at these fantastic new additions to our growing hotel portfolio,” said Steve Bennett, chief property and development officer, Travelodge. “The Spanish hotel market is growing at pace and we want to take this opportunity to take the Travelodge brand to new business and leisure locations across Spain. There are significant ongoing opportunities for our business, with the potential to offer good value and quality accommodation in many more locations across the country.”
Travelodge’s strategic expansion in Spain is part of its overall development strategy, which reflects the key findings from a study, including a research of the Spanish hotel market, which Travelodge commissioned from Christie & Co. Research. The study showed that Spain was among the most visited countries globally and also one of the rapidly growing hotel markets in the world. However, there is a significant void in the market for branded, low cost and good quality accommodation options in the midscale and economy segment, the study revealed.
Other studies shared the same outlook. According to its latest study on the Spanish hotel market, Global Asset Solution found that in 2023 Spain’s tourism sector surpassed initial expectations and outperformed pre-pandemic figures. Spain will continue to attract international hotel brands, with more budget brands increasingly expanding their portfolio across the country as domestic and international tourism grows.
Spain’s lucrative tourism opportunities have successfully attracted foreign hotel companies, with several new investment funds foraying into the country, the Global Asset Solution research said. Hotel supply continues to be dominated by independent hotels and the country offers many opportunities for new hotel brands.
At present, the Spanish hotel market is primarily dominated by independent and family-owned businesses, franchise and management operators and shorter leasehold operators. According to the Christie & Co. study, investors are increasingly preferring stable long-term income streams aligning with Spain’s growing tourism industry. This is a good fit for Travelodge’s traditional long-term, fixed-lease model, which the company has successfully used in the U.K.
With close to four decades of experience in operating budget hotels, the company operates more than 600 hotels in the U.K., Ireland as well as Spain.
Travelodge is aiming to further strengthen its presence in Spain and has identified 20 initial target locations – Barcelona, Madrid, Valencia, Alicante, Bilbao, Cádiz, Málaga, Palma Mallorca, San Sebastián, Seville, Benidorm, Córdoba, Gerona, Granada, Las Palmas De Gran Canaria, Santiago de Compostela, Santander, Tarragona, Valladolid and Zaragoza. In a statement, the group said these areas currently have insufficient supply of good quality, economy-branded accommodation options.
Travelodge arrived in Spain in 2004 when it opened its first hotel in Madrid (Torrelaguna) and followed it up by openings in Barcelona Fira in 2006, Valencia Airport (2011), Barcelona Poblenou and Madrid Metropolitano, formerly Madrid Alcala (both 2013). In 2023, the company opened its first property in Spain in 10 years with the launch of Madrid Coslada Aeropuerto.