Travelodge has expanded its portfolio with the acquisition of a trio of new hotels in Spain

Andrea Thompson

ByAndrea Thompson

October 22, 2024

Travelodge, the UK’s first budget hotel brand which operates over 600 hotels across the UK, Ireland and Spain, continues its Spanish expansion and has today announced that it has exchanged deals for three new hotels in Spain: San Sebastian, Cadiz and Alicante, totalling 263 rooms.

All three hotels will be new constructions and will operate under a leasehold model.

Travelodge already operates an existing strongly performing Spanish portfolio of 11 hotels* in prime locations across Spain. The addition of these three new hotels will offer guests further choice, ensuring that good quality and value accommodation continues to be more accessible for both business and leisure travellers across the country.
San Sebastian
Travelodge has exchanged a deal with landlord Astigarraga Eurohostels, S.L on a new hotel in San Sebastian, located in Astigarraga, in the San Sebastian metropolitan area. This will be Travelodge’s first hotel in San Sebastian and planning has been submitted to deliver a 78-room hotel, comprising 16 family rooms, 52 double rooms, eight single rooms and two accessible rooms. Construction is expected to commence on site in 2025.
Cadiz
Travelodge has exchanged a deal with landlord Verbian Street Iberica S.L. on a new hotel in Cadiz, located at Gibraltar Street in the Zona Franca. This will be the Group’s first hotel in Cadiz and it is expected the developer VDR will commence construction in Spring 2025. The new hotel will have a total of 103 rooms, including 85 double rooms, 14 family rooms and four accessible rooms.
Alicante
Travelodge has exchanged a deal with landlord Aguilera Orozco S.L. on a new hotel in Alicante, located at Avenida Aguilera 28 – which will be Travelodge’s second hotel in Alicante. Construction of the new hotel, by the developer Abbi Retail, is expected to commence in Summer 2025. The new hotel will offer a total of 82 rooms, including 66 double rooms, 14 family rooms and two accessible rooms.
All three new hotels will feature Travelodge’s in-house restaurant, 85 Bar Cafe, offering guests the Travelodge breakfast buffet alongside a full menu of food and beverage throughout the day.
Last year, Travelodge announced its strategic expansion programme for Spain when it opened its sixth Spanish hotel in Madrid (Coslada Aeropuerto Travelodge), as part of the Group’s overall development strategy. There has already been good progress on these plans as earlier this year, Travelodge announced it had acquired six hotels from Louvre Hotels Group (five acquired on a freehold basis and one to be acquired on a long leasehold), which doubled the hotel chain’s Spanish portfolio overnight. The addition of the new hotels in San Sebastian, Cadiz and Alicante will bring Travelodge’s total number of hotels in Spain to 15.
Travelodge has nearly four decades of expertise in operating budget hotels, due to its prominent presence in the UK. To help capitalise on this Spanish growth opportunity, the group has identified 20 initial target markets where the development team are seeking opportunities – areas that currently have a shortage of good quality, economy branded accommodation. Target markets include: 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.
Travelodge already operates a successful leasehold hotel model in Spain and has been trading in the country for 20 years. The company opened its first hotel in Madrid (Torrelaguna) in 2004, which was followed by Barcelona Fira (2006), Valencia Airport (2011), Barcelona Poblenou and Madrid Metropolitano, formerly Madrid Alcala (both 2013). Last year, Travelodge opened Madrid Coslada Aeropuerto, its first opening in Spain in 10 years and completed its acquisition of a further six* hotels earlier this year.
*Six hotels before 2024 acquisition. Five out of the six hotel acquisitions have completed, with one hotel acquisition pending