Hotel chain Travelodge plans to expand on to the continent and open 100 facilities in Spain by 2020.
The firm plans to spend some £700 million on the international development and the first cities to be targeted will include Barcelona, Madrid and Valencia.
At present, there are only 100 budget hotels in Spain and as such Travelodge believes there to be "huge" potential for the sector.
Chief executive of the firm Grant Hearn commented: "We are very excited about our plans for Spain - an important part of Travelodge's longer-term growth strategy."
In recent weeks, Intercontinental Hotels Group announced a worldwide relaunch of its Holiday Inn chain after investing up to $1 billion (£488 million) in the brand.
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