Irish group Dalata Hotels is paying £91 million to gain its first hotel in central London.
The company has exchanged contracts to acquire a 300-year leasehold on a property under development in Aldgate.
The construction of the 212-room hotel, which will be branded Clayton Hotel Aldgate London, is expected to be completed and operational towards the end of the year.
The property, with a restaurant, bar and access to a fitness centre, will be located adjacent to Aldgate East underground station and in close to the new Liverpool Street and Whitechapel Crossrail stations, both of which are due to open in December.
Dalata business development and finance deputy CEO Dermot Crowley said: “We already successfully operate two Clayton hotels in the greater London area at Chiswick and Cricklewood.
“This new hotel gives us a presence in a key central location within the city and is ideally located for corporate customers who want to be close to the City of London and leisure guests visiting the many attractions that the city has to offer.
“Access to the Aldgate area will be further enhanced with the opening of two new Crossrail stations at Liverpool Street and Whitechapel in December 2018.”
He added: “Although revpars [revenue per available room] have fallen slightly in London over the last 12 months, London remains a key gateway city in Europe that will continue to benefit from the growth in international travel.
“The announcement today represents another very important milestone in the growth of Dalata in the UK. We now have a pipeline of almost 2,000 rooms across key UK cities such as London, Birmingham, Glasgow, Manchester and Bristol.”