Travelodge is to open a further three hotels in the London borough of Wandsworth in response to what it calls the "Nappy Valley" effect.
The news came as the company opened its new £10m London Clapham Junction Travelodge.
The budget hotel chain claimed it had seen a change in the profile of its customers in its hotels in Fulham and Battersea over the past 12 months, with more local residents taking advantage of the low-cost rooms and booking-in visiting grandparents and family members owing to lack of space at home.
Tony O'Brien, Travelodge UK development director, said: "Our Fulham and Battersea hotels enjoy enormous success right throughout the year, and the assumption was that this was primarily due to business customers as well as tourists.
"However, our hotel staff are now saying that over a third of customers tell them they are actually in London to visit their children and grandchildren.
"With so many young people in London, especially in Nappy Valley, starting their families while living in small flats and houses, the only option for Granny and Granddad to come and visit is to stay in a nearby hotel. It is a remarkable trend, but one that we are poised to capitalise on as part of our wider growth story in London."
Last month, Travelodge opened a 90-room hotel in Balham and along with the 84-room Clapham Junction hotel.
Travelodge claims to be the biggest budget hotel brand in London, with 54 hotels and over 7,000 rooms, representing a 4% share of the capital's hotel market.
It is now on the look-out for at least another three further locations within the Wandsworth area: Battersea Old Town, Clapham Common and Clapham Old Town/Lavender Hill.
By Neil Gerrard
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