Ennismore, the owner of Gleneagles and the Hoxton, is to launch a new budget brand of around 25 hotels.
NoCo is expected to appeal to travellers who want more than a generic hotel experience at a fair price by embracing "technology, great value and stylish design".
Each NoCo hotel will have 150 to 200 bedrooms, with rates at under £100 - a lower price point than the Hoxton, which was originally launched as a design-led budget brand with Soho House operating its food and beverage outlets.
The first of 25 NoCo hotels in key UK cities, which will operate under leasehold agreements, is due to open in 2018.
Sharan Pasricha, chief executive and founder of Ennismore said: "We've created NoCo to challenge the status quo of today's budget brands.
"Travelling habits and demands have changed; as has the way that people now use hotels. Our aim is to raise the bar for affordable hotels and provide business and leisure travellers with a stylish alternative to bland, cookie cutter hotels so often found in cities outside of London."
Ben Russell, acquisitions director of Ennismore, added: "We believe our exciting plans for the product coupled by our track record with the Hoxton makes Ennismore a strong proposition for local developers looking to build out hospitality assets".
Founded in 2010, Ennismore acquired the original Hoxton hotel in Shoredtich in 2012 for around £65m, and has since opened properties in Holborn, London, and Amsterdam. Further Hoxton hotels are planned for Shoreditch, London; New York; Paris and Los Angeles.
The five-red-AA-star, 232-bedroom Gleneagles hotel in Perthshire was bought by Ennismore in July 2015 for around £200m. It is currently under-going what the company describes as a "bold and creative" multi-million pound refurbishment.
Ennismore is also the owner and operator of Eggbreak, a stand-alone restaurant in Notting Hill, and plans to open a second restaurant - Tandoor Chop House in Covent Garden - this summer.
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