easyHotel has purchased a site in Central Milton Keynes to build a new 124-room hotel.
The budget hotel chain today announced that it has conditionally acquired a 125-year leasehold of part of Norfolk House on Silbury Boulevard.
The development has already received planning permission and the acquisition will be completed subject to planning being finalised at the end of the judicial review period.
The scheme has proved controversial as it will be converting part of Norfolk House from office use to the hotel.
A number of small businesses complained to the Citizen that they had spent thousands of pounds on improving their floor space in the building having just signed up to lodge in the building, only to be given a month's notice to vacate the premises before the New Year.
easyHotel is expected to open by mid-2019 at a total cost of approximately £8.7 million.
Guy Parsons, CEO of easyHotel plc said: “We are delighted to have secured this site in Milton Keynes.
"Now in its 50th year, the town is home to many international business, has the third highest business start-up rate of any UK city and boasts an impressive range of shopping and leisure facilities.
“This acquisition is part of our ongoing strategy of offering comfortable, affordable accommodation in key tourist and business locations in the UK and internationally, and this completes the deployment of funds from our 2016 equity fundraising and bank loan.
“We continue to see a good number of attractive potential development opportunities, both in the UK and Europe to further accelerate the Group's growth."