UK-based hotel business Whitbread has initiated construction enabling works for its new flagship hub by Premier Inn hotel at 5 Strand, London.

The hotel, poised to be one of the largest budget hotels in the city, is situated near Trafalgar Square in Central London.

Purchased by Whitbread in August 2022, the site is part of the company's strategy to expand its footprint in the London market.

The £200m ($271.78m) project, which includes land and construction costs, will feature a 13-storey, 16,000m² budget hotel offering 693 bedrooms.

The hotel is expected to open in late 2028.

John F Hunt is responsible for the construction enabling works, which are anticipated to be finished by early 2026.

These initial works encompass the demolition of the former office building, reconstruction to ground level, and establishing the hotel's 14-storey core. The contract for main construction is expected to be granted this summer.

Whitbread project and programme manager Hester King said: “Breaking ground at 5 Strand is a major milestone for Whitbread and a defining moment in the evolution of our hub by Premier Inn brand, which began its journey a decade ago at St Martins Lane in Covent Garden.

“This flagship development – just metres from Trafalgar Square and Charing Cross Station – demonstrates our ability to secure, design, and deliver high-quality hotels in London’s most complex and sought-after locations.

"It reflects the breadth of our in-house expertise and Whitbread’s long-term commitment to growing its affordable hotel brands in the capital, where branded budget hotels are in short supply.”

Westminster City Council (WCC) granted planning permission for the development in October 2024.

Upon completion, Whitbread anticipates employing approximately 150 team members at the hotel, with recruitment efforts focusing on the City of Westminster and neighbouring inner London boroughs.

The hub by Premier Inn at 5 Strand aligns with Whitbread's sustainability programme 'Force for Good', and is designed to operate exclusively on electricity from renewable sources.

The company is committed to achieving net-zero carbon emissions from its direct operations by 2040.

Currently, the company operates nine Premier Inn and hub by Premier Inn hotels within the borough of Westminster and is a signatory to WCC’s Sustainable City Charter initiative.