Saturday, 11 November 2023, 07:25
Malaga is firmly in the sights of the British hotel chain focused on the economy sector of market, Travelodge, which is looking for properties to manage in the capital of the Costa del Sol.
The group is currently immersed in a major expansion plan in Spain in which it has also identified Cadiz, Seville, Cordoba and Granada which, together with Malaga, are considered to be the cities that offer the greatest opportunity for the brand in the Andalusian region as part of its roadmap for growth in the Spanish market.
The chain already has nearly 600 hotels in the United Kingdom, Ireland and Spain, where at the end of last month it opened its sixth hotel, specifically in the Madrid town of Coslada.
Travelodge said it has "an ambitious expansion plan in Spain, which has become a key market for the company due to the opportunities that exist". It pointed out that to achieve this objective they have worked closely with a team of consultants from Christie & Co, who have prepared a strategic expansion report based on the development opportunities offered by the Spanish hotel market.
"Spain is the fourth most visited country in the world and its tourism sector is now a major driver of the Spanish economy. This is creating new opportunities in the Spanish hotel market, especially for the mid-scale and economy segment, and we want to take advantage of this opportunity to bring the Travelodge brand to new business and leisure locations in the country," said Ángel Beleño, general manager of the chain in Spain.
Travelodge revealed that the analysis of the Spanish market had identified the top twenty destinatons with the greatest growth potential in Spain for this quality economic segment. "This potential growth in the Spanish market for economy and mid-scale hotels represents a great opportunity for investors looking for solid, long-term revenue streams, and is well aligned with Travelodge's expansion plans," it said.
The company stated that the capital of the Costa del Sol is a key location on their hit list, along with Alicante, Bilbao, Cadiz, Palma de Mallorca, San Sebastian and Seville. Secondary locations include Benidorm, Cordoba, Gerona, Granada, Las Palmas de Gran Canaria, Santiago de Compostela, Santander, Tarragona, Valladolid and Zaragoza.
The British chain also detailed that the results of this report confirm that, despite Spain being one of the world's leading leisure and business destinations, it is still a market with a lower presence of low-budget accommodation. Therefore, economy and mid-scale hotel rooms only represent 33% of the total offer compared to those of more mature markets in this sector, such as France, which already represent 59%; the United Kingdom, with 41%, or the USA, with 44%. Furthermore, it highlighted the potential of this sector in Spain and estimates that 15,000 rooms will be added to this 'low cost' business in the next five years, combining new developments and conversions of existing hotels.
"The company has almost four decades of experience managing budget hotels, a strong brand and a proven and successful long-term leasing model. For this expansion plan in Spain, the company has partnered with the renowned real estate brokerage group Aldaba Partners, which will provide a comprehensive investment advisory service. This hotel development plan will provide opportunities to generate strong long-term revenue streams for investors," Travelodge said.
After presenting a financial balance sheet with historic records in the six months to 30 June 2023, reporting a revenue and profit performance significantly ahead of 2022 earnings of £104.5 million for the half year, the company emphasised that "with almost four decades of experience managing budget hotels, a strong brand and a proven and successful long-term leasing model, we can help develop the mid-scale and budget hotel sector in Spain. Our latest acquisition in Coslada (Madrid) is a great example of how we can turn an existing business into a successful Travelodge hotel, offering investors and owners an alternative long-term revenue stream in Spain and providing business and leisure travellers with more choice and great value accommodation".
Today the chain, which in 1985 became the UK's first budget hotel brand when it opened its first hotel in Barton-under-Needwood, offers more than 46,000 rooms in its 598 hotels.
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