Travelodge to invest in Barcelona
July 8th, 2009 — barcelonaCitygrove has agreed to buy three sites in Barcelona, Valencia and Seville, if planning permission is given. The total cost of the sites is around €26m and they will be let to Travelodge. Citygrove, based in the UK and Spain, is developing schemes in both countries one of which is a shopping centre in the town of Algeciras in southern Spain.
The first of the hotels is due to begin construction next March and is scheduled for completion by June 2011.
In Valencia the company plan to build a 110 room hotel on a site close to Valencia airport for a rent of €650,000 a year. Construction is due to begin in December 2009 and will open by December 2010.
In Seville, it has bought a site for a 200-bed hotel on the 1929 Expo site near the old town from local bus operator Tussam. Travelodge is paying €1.8m a year. Construction is to start next March and the hotel is due to open by May 2011.
Chairman of Citygrove,Toby Baines said: ‘We have always worked with the prelet model for development. We have not had problems with development finance because what we develop is 100% let. The only risk possible is construction cost overrun.’
Murray Adair, managing director at Citygrove, said: ‘We already have an initial funding offer in place. Travelodge has a good balance sheet, and with fixed uplifts, the development is a good product.’
July 8th, 2009 at 10:44 am
This is welcome news. It’s about time a decent hotel chain set foot in Spain and it’ll be better than those shoddy F1 hotels that are springing up all over the place.
July 15th, 2009 at 2:45 pm
I agree, those F1 hotels are awful and this will make a change.
February 17th, 2010 at 2:41 pm
I’ve seen progression in every post. Your newer posts are simply wonderful compared to your posts in the past. Keep up the good work!