Travelodge hope to open a new hotel in the borough which would create 20 jobs and boost the local economy by upwards of £2 million.
The major chain, which has a hotel in Barking, are looking for a site they can develop in Dagenham.
Grant Hearn, chief executive of Travelodge Hotels, said: “It is clear that the outer London Boroughs have a lack of good quality, affordable hotel accommodation.
“Many have large employment clusters and impressive regeneration proposals yet have an undersupply of hotel rooms.”
He said the Barking hotel in Arboretum Place performed strongly all year round and added: “Whether it be business travellers, leisure customers or families coming to visit loved ones, we are regularly achieving high occupancy levels.”
The Travelodge spokesman said that if a site is found the hotel should open within the next two years.
A 80-bed Premier Inn hotel and Brewers Fayre restaurant opened before Christmas at Chequers Corner in Dagenham.
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