Budget hotel chain Travelodge has announced a 1bn euro (£719m) expansion plan in Spain, which will see the company open 100 hotels in the country by 2020.

The group will initially target the major cities, including Madrid, Barcelona and Valencia before rolling out to other cities, suburban areas and airports.

The plans follow a pilot scheme of three Spanish hotels – two in Madrid and one in Barcelona.

Grant Hearn, chief executive of Travelodge, said: “We are very excited about our plans for Spain, which are an important part of our longer-term growth strategy.

“While there is a very strong growth outlook in the UK for the next 10-15 years, we have demonstrated through our pilot that our model works in Spain and the time is right to capitalise on this demand.”