Travelodge has announced plans to expand operations in Spain, with the addition of a third Madrid property and the appointment of hospitality advisors Aldaba Partners to help grow its portfolio in the country.

Travelodge has acquired the 78-room NH Villa de Coslada, situated close to the Civitas Metropolitano Stadium, IFEMA Convention Center and Madrid Barajas airport.

Following the acquisition, the hotel will be renamed the Travelodge Madrid Coslada Aeropuerto. Around £1 million will be invested to acquire the lease and refurbish the property under Travelodge’s latest budget-luxe design.

Refurbishment work will begin in May, meanwhile the hotel will remain operational throughout, with an official opening expected this summer.

Furthermore, the group is targeting further expansion in Spain, with Aldaba Partners tasked with finding suitable sites and third party investors. According to Travelodge, commissioned research on the Spanish hotel market have showed that there was “a significant gap for branded, low cost and good quality accommodation in the midscale and economy segment”.

Key growth locations for the brand include Barcelona, Madrid, Alicante, Bilbao, Granada, Malaga, Palma, Seville and Valencia. The group’s Spanish portfolio currently includes three hotels in Madrid (including the addition above), two in Barcelona and one in Valencia.

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. With nearly four decades of expertise in operating budget hotels, a strong brand and a proven successful long term lease model in place, we can offer investors and landlords an alternative long term income stream in Spain, whilst offering business and leisure travellers more choice and great value accommodation.

Steve Bennett, Chief property and development officer, Travelodge