The plans for a new hotel in central London have been approved.

Westminster City Council has granted Whitbread PLC permission to begin construction on a new hotel at 5 Strand in central London.

When finished, the 693-room hotel will rank among the biggest low-cost accommodation choices in the city. Situated in a superb position near Nelson's Column and just off Trafalgar Square, it will operate under the hub by Premier Inn brand.

As part of its plan to increase its market share in the well-liked London market, where a substantial amount of Premier Inn's future UK room pipeline is situated, Whitbread purchased the development site freehold.

The corporation's dedication to the hub by Premier Inn brand, which aims to introduce Premier Inn's reasonably priced hotel rooms into the centre of London and other significant UK cities, is demonstrated by the more than £200 million investment, which covers construction and associated expenses.

Whitbread's Managing Director for Property and International, Mark Anderson, 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 making significant investments in London in an effort to address the lack of branded low-cost hotel rooms in the city. With 12 more properties in its secured development pipeline in the capital, the firm already provides more than 100 spaces to its customers within the M25. It is also seeking additional sites in 40 locations in inner and outer London for its Premier Inn and hub by Premier Inn brands.

The approved 16,000 square meter hotel at 5 Strand will be spread across thirteen stories, including a sizable ground floor area facing East Northumberland Street and the Strand. Whitbread anticipates that the hotel will employ about 150 people when it opens, with a concentration on hiring people from the City of Westminster and other inner London districts.