The near 700-bedroom hub by Premier Inn hotel, which will be one of London’s largest budget hotels when it opens, will start construction next year.

The consented 16,000 sq m hotel at 5 Strand will be set over 13 storeys fronting onto the Strand and Northumberland Street to the east of the site

Whitbread acquired the development site freehold as part of its strategy to expand its presence in the popular London market where a significant proportion of Premier Inn’s future UK rooms pipeline is located.

The £200m+ investment, which includes construction and related costs, underlines the company’s commitment to the hub by Premier Inn brand which is designed to bring smaller Premier Inn affordable hotel bedrooms into the heart of London and other major UK cities.

The project team includes Axiom Architects, MEP consultant Thornley & Lumb and structural engineer Elliott Wood.

Mark Anderson, managing director for Property and International for Whitbread, said: “5 Strand is an excellent example of how we think the hub by Premier Inn brand can evolve in Central London.

“It also shows how we can use Whitbread’s strong balance sheet to acquire the best positioned, most accessible, and high-demand locations in the capital to grow our brands. With planning permission now secured we will move quickly to begin construction of the new hotel and deliver a true flagship location for our guests.”

Whitbread has been investing heavily in London as it seeks to redress an under-supply of branded budget hotel bedrooms in the capital.

It is also seeking new sites in 40 locations in inner and outer London for its Premier Inn and hub by Premier Inn brands.