Travelodge will open its sixth Spanish hotel in Madrid tomorrow.
The 98-room Travelodge Madrid Alcala is the company's third and largest property in the capital.
It is located in the city's Julian Camarillo commercial district and features Travelodge's new room design, which includes a new luxury king-size bed.
The hotel also has a bar/cafe that offers a 24-hour food and drink service.
Earlier this year, Travelodge opened a hotel in Barcelona (see news, May 9).
Travelodge managing director Paul Harvey 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.
"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 per cent, and the UK, which currently stands at just under 20 per cent.
"From next year we want to focus on growing our presence across Spain’s other big cities such as Granada and Seville."