Whitbread PLC has received planning approval from Westminster City Council to build a new hotel at 5 Strand in central London.

The hotel, featuring 693 rooms, will be one of the largest budget accommodations in the city when completed. It will operate under the hub by Premier Inn brand, occupying a prime location just off Trafalgar Square, steps away from Nelson's Column.

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 over £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 Premier Inn's affordable hotel bedrooms into the heart of London and other major UK cities.

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Mark Anderson, Managing Director for Property and International for Whitbread, said: "hub by Premier Inn was launched a decade ago in St. Martin’s Lane, a few hundred metres from 5 Strand. The brand has blossomed into a network of 18 popular hub hotels in Central London and Edinburgh and has become a proven model for bringing our affordable bedrooms into the most central, vibrant, and connected locations for our guests.

"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. The company currently offers its customers more than 100+ locations within the M25 with a further 12 locations in its secured development pipeline 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.

The consented 16,000 sq metre hotel at 5 Strand will be set over thirteen storeys with a generous ground-floor space fronting onto the Strand and Northumberland Street to the east of the site. Whitbread expects around 150 team will work at the hotel on opening, with recruitment focused within the City of Westminster and other inner London boroughs.