A HOTEL chain is eyeing up Penarth for its next expansion.

Wales’s first budget hotel chain, Travelodge, has announced it is actively looking for seven new hotels sites across Wales and Penarth has been chosen as one of the key locations. This will be Travelodge’s first hotel in Penarth.

Opening a Travelodge hotel in the town would represent an investment of around £7m for third party investors and create 25 new jobs.

Travelodge's own studies indicate customers spend double their room rate with local businesses during their stay, which would equate to a multimillion spend annually.

This expansion programme was announced today at the official opening of Rhyl Seafront Travelodge, the hotel company’s 576th hotel and its 27th in Wales.

Tony O’Brien, Travelodge Development Director said: “As Wales’ first branded budget hotel chain we are delighted to celebrate 32 years of trading in Wales by opening our first hotel in Rhyl and announcing plans to open a further seven hotels including a second hotel in Wrexham.

"During the last three decades we have become symbolic in Wales for offering great value. However, with locations such as Penarth growing from strength to strength there is a shortage of good quality and low cost accommodation to fulfil demand. Therefore we are looking to expand our portfolio in Wales with a further seven hotels, this will boost our presence to 34.”

Cllr Jonathan Bird, Cabinet Member for Regeneration and Planning, said: "This is very exciting news for Penarth. The council does a huge amount of work to promote the Vale as both a destination for visitors and a place for companies to do business.

"To be at the top of the list for a major operator that is looking to expand represents a vote of confidence from the sector for the Vale of Glamorgan and a vindication of this hard work.

"We look forward to discussing potential locations with Travelodge and hopefully announcing further developments in the near future.”

The other six locations to make the Travelodge Wales expansion programme are Aberystwyth, Pwllheli, Swansea, Tenby, Torfaen/Blaenau and Wrexham.

Collectively this expansion programme represents an investment of £45m for third party investors and will create 200 new jobs across Wales.