Travelodge is building its largest ever hotel in London to act as a flagship site for the City.
The budget hotel chain's new build will create nearly 400 rooms in the heart of central London, and chief executive Peter Gowers called it a "milestone" for the company's growth. It is expected to open in 2018 on Middlesex Street near the Gherkin.
Travelodge also today announced a £125m investment to open 15 new branches across the UK in 2017, creating 325 new jobs and growing the firm's network to 558 locations in the UK, Spain and Ireland.
Five of the new branches will be based in London, with locations in Bromley, Romford, Wood Green, Brent Cross and Harrow. These new sites will create 115 jobs in the City.
Gowers said the UK is still behind other major markets like the US in high quality, low cost hotel offerings.
He said the company has identified 250 further locations where it aims to open new Travelodge sites in the years ahead.
"We expect to further extend our national network and also to add more rooms in London, where with average hotel prices currently at almost twice the level of the UK regions, customers are crying out for more good quality, low-cost places to stay."