InterContinental Hotels Group (IHG) is set to open its largest Holiday Inn Express in Europe at London Heathrow Terminal 5 in 2011.
The company has signed a franchise agreement with Crimson Hotels Group and work has already started on the 300-bedroom property.
The first phase, including 125 rooms, is set to be completed in May 2010, with the rest of the hotel fully open by May 2011.
The new hotel is being redeveloped from an existing 128-room hotel on site and will undergo a complete redesign of its exterior to incorporate the Holiday Inn Express brand.
IHG is currently in the middle of an ambitious three-year $1b (£489m) global overhaul of its Holiday Inn brand.
Kirk Kinsell, president of Europe, Middle East and Africa, at IHG, said: "We're in the middle of the hospitality industry's biggest ever relaunch with more than 3,200 Holiday Inn and Holiday Inn Express hotels around the world being relaunched by the end of 2010.
"We have more than 1,000 Holiday Inn hotels in the pipeline. It's great news that we will have Europe's biggest Holiday Inn Express at the world's busiest international airport open in twelve months' time."
Aly Kassam, finance director for Crimson Hotels Group, said: "The hotel will offer business and leisure travellers a great night's sleep and all the facilities they need right by London Heathrow Terminal 5. Once it's finished the hotel will employ around 150 people from the local community."
By Gemma Sharkey
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