Budget brand EasyHotel is to take over the 104-room Tune hotel in Newcastle.
The hotel, which opened in 2014, will be rebranded next month. It has been let on a 25-year FRI (fully repairing and insuring) lease at an annual rent of £442,000.
While EasyHotel focuses on owned and franchise developments, it said that it would consider specific leased sites.
Chief executive Guy Parsons said: "This is an excellent opportunity to establish a footprint in the vibrant and popular City of Newcastle. The 104 rooms will require minimal work to bring them in line with our brand and we will open the new easyHotel Newcastle next month.
"It has been a year of accelerated growth for the group, validating our strategy of offering comfortable, affordable accommodation in key tourist and business locations in the UK and internationally. The board looks forward to announcing further opportunities for the easyHotel brand as we continue to expand our development pipeline."