It will create 95 jobs with the three hotels in Barcelona, Seville and Valencia, aimed at Spanish domestic holidaymakers and the business community.
Travelodge aims to reach 100 hotels in Spain by 2020 in a €1bn expansion programme.
It has identified Spain as its second international destination after Ireland because of the favourable conditions for budget hotel growth.
Despite Spanish travellers taking 157m domestic trips a year, there are only 100 budget hotels in the country, representing less than 1% of the total number. This contrasts to 13% in the UK, 24% in France and 33% in the US.
The new Barcelona hotel is in the former Olympics athletes’ village, while the Seville hotel is in the city centre, next to the El Prado Metro Station. The three hotels are all set to open in 2011.
Travelodge already operates three hotels in Spain, two in Madrid and one in Barcelona.
All three have been trading strongly at a combined occupancy of 81%, while forward bookings for the summer are the strongest on record.
Paul Harvey, managing director for international development at Travelodge, said: ‘The recent downturn in Spain has meant that locations are presenting themselves to us at prices which are far more realistic when compared to the recent boom years.
‘This has enabled us to build up a strong pipeline of properties across the country and I expect to be making further expansion announcements soon.’
Internet bookings have also recently taken off in Spain, further boosting business for Travelodge, which sells 87% of its rooms online.
See more Travelodge news from e-tid.com:
Travelodge benefits from consumers trading down (14/05/2009)
Recession brings benefits for Travelodge (14/04/2009)
Travelodge in €1bn Spanish expansion (19/11/2007)
And more Spanish tourism news:
Hotels in Spain '30% full for July and August' (08/06/2009)
Spain urged to boost UK marketing (08/06/2009)
Sol Melia pins summer hopes on late bookings (13/05/2009)