Travelodge Targets Mallorca In Spanish Expansion

The British hotel brand Travelodge is considering a significant expansion in Spain. Recent plans suggest that the company is keen on strengthening its foothold in the Spanish market, with Mallorca set firmly in its sights.

According to Economia de Mallorca, the major UK-based hotel company, Travelodge, revealed its ambition to solidify its reputation as a leading quality budget hotel chain in Spain. Angel Beleño, the director of the British chain in Spain, shared the company’s vision and provided insights into its expansion strategy.

Low-Budget Market Potential

While Spain boasts a reputation as a top global destination for both leisure and business, it’s striking that only 33 per cent of its hotel rooms are categorised as low-budget.

This is in stark contrast to mature markets like France at 59 per cent, the UK at 41 per cent, and the USA at 44 per cent. A report from consultancy firm Christie & Co, commissioned by Travelodge, highlights the growth potential in this segment of the market.

Anticipating Growth

According to the same report, Spain’s hotel market, particularly the economic and mid-scale segments, could potentially witness an addition of 15,000 rooms in the next five years. This growth is expected to come from both new developments and conversions of existing hotels.

Strategic Expansion Cities

Beleño shed light on the chain’s expansion strategy, revealing around 20 cities that present prime opportunities. Notably, Palma Mallorca has been identified as one of the main locations, along with Alicante, Bilbao, Cadiz, Malaga, San Sebastian, and Sevilla.

The Travelodge spokesman also said secondary sites included: Benidorm, Cordoba, Girona, Granada, Las Palmas de Gran Canaria, Santiago de Compostela, Santander, Tarragona, Valladolid and Zaragoza.

Currently, Travelodge is actively pursuing 12 to 15 potential projects in Spain. Some of these are in advanced stages in cities like Cadiz, Alicante, Sevilla, and Madrid.

Beleño also highlighted that hotels in Spain – which have two double and family rooms available, with capacity for up to 4 people, and which allow pets – register ‘a very high occupancy,’ around 90 per cent annually.