Travelodge has opened its sixth hotel in Spain, and its third and largest in the capital city Madrid.
The new 98-room property in the city's Julian Camarillo commercial district represents a €12m (£10m) investment.
Paul Harvey, Travelodge managing director said: "The budget hotel concept is a growing success in Spain. All of our Spanish properties are trading well. As a result of the double dip recession in Spain, we have seen a significant rise in corporate and leisure Spanish travellers switching from high end hotel brands to Travelodge.
"Spaniards want their euro to work hard for them, and as a result they are making savvier choices so that they can obtain real value for money.
"We are growing steadily in Spain. Our focus to date has been to grow a presence in the country's three largest cities and we are delighted to be opening our third hotel in the capital. Madrid Alcala Travelodge hotel is located in the city's key industrial and commercial district, just 15 minutes from Madrid Barajas airport. The hotel has got off to a flying start and has been literally full every night since it opened. Our customer base is predominately corporate which includes customers from local SMEs as well as multinationals such as Bosch and Tata."
"We believe the opportunity to grow in Spain is still huge as the branded budget hotel sector represents just two per cent of total hotel stock. This is substantially lower than other European countries such as France which is 24% and the UK which currently stands at just under 20%. From next year we want to focus on growing our presence across Spain's other big cities such as Granada and Seville."