"Super-budget" hotel chain EasyHotel is to spend £8m to build a new 120-bedroom freehold hotel in Cardiff.
The announcement came after the firm acquired an office block in the centre of the city.
The hotel development, which is subject to planning permission, is located at Fitzalan Place, close to Cardiff Queen Street station.
An office block will be demolished to make way for the new hotel, which is expected to open in 2019.
EasyHotel currently has five owned hotels and 20 franchises hotels. It is due to open EasyHotel Liverpool in November and hotels in Ipswich, Barcelona, Leeds and Sheffield are due to open in 2018.
Chief executive Guy Parsons said: "We are delighted to be investing in Cardiff, a well-connected modern city that attracts 20 million visitors each year. This acquisition is part of our ongoing strategy of offering comfortable, affordable accommodation in key tourist and business locations in the UK and internationally. We expect easyHotel Cardiff to attract a variety of leisure and business customers and look forward to being part of the City's ongoing growth and success."
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