Travelodge is to open 100 hotels in Spain by 2020, in the budget hotel group’s first big move into international territory. Financial Times, Daily Telegraph

In a replication of its UK room-pricing strategy, the group will operate hotels of up to 100 rooms with online prices starting at €20 (£14.30).

The move involves development partners investing €600m in new-build properties or converting existing buildings. Travelodge estimates it will commit €1bn in rent over the course of the 25-year leases it will sign with developers.

The group will focus on Madrid Barcelona and Valencia before rolling out the brand elsewhere in Spain, including airports and suburbs.

Grant Hearn, chief executive, said the UK market outlook remained strong for the next 10-15 years, but added that pilot hotels proved the 'Travelodge model works in Spain and the time is right to capitalise on demand'.

Travelodge claims Spain has only 100 budget hotels and that there is “huge” market potential.

Travelodge will have eight hotels in Spain in three years and 15 sites in its development pipeline.

The company said it was focused on UK growth and expansion in Spain, but did not rule out further forays overseas.