Holiday FM has launched a number of FM stations in popular holiday resorts including Tenerife, Lanzarote, Gran Canaria and the Costa del Sol. Further launches will follow in the Spanish Costas and the Balearics.
The station's daily output is a feed of music and news taken from across the Capital FM network stations.
Nathalie Schwarz, Capital's director of strategy and development, said: "Holiday FM is an important strategic development for Capital, which fits neatly with our ambitions to be the pre-eminent provider of music-based entertainment at home and abroad."
Sponsorship, marketing and commercial partnerships will be handled by Holiday FM.
"Holiday FM will extend Capital Radio's influence across Europe enabling us to build upon the power of our brands in new and innovative ways, and to connect with our listeners, whilst maximising audience, marketing and revenue opportunities."
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