A new hotel is set to open as part of a chain’s £115million expansion plans.

Travelodge's 76th hotel in the capital will be based in Rainham Road South, Dagenham. The 78-room, Dagenham East Travelodge represents an investment of £5m and will create 20 jobs.

Peter Gowers, Travelodge's chief executive, said: "Despite the uncertainty facing the UK, the long-term prospects for low-cost hotels remain strong.

"The next phase of our expansion plan will see us deliver more choice in more places than ever before."

The company started a modernisation programme more than five years ago and has since opened more than 60 new hotels investing in excess of £150m.

It reports sales having grown by more than £250m putting it down to an up tick in business travellers staying at the firm's budget hotels.

It expects to open 17 new hotels across the country which is estimates will create more than 350 jobs.

A second Travelodge, London Beckton North Circular, is due to open in neighbouring Newham.