Sinclair Beecham, co-founder of sandwich shop chain Pret A Manger, has raised £18.4m to launch a new hotel in London's Shoreditch.
Beecham's company, Quest Hotels, plans to open a 204-bedroom "limited-service budget luxury" hotel in March 2006. Building work on the site is scheduled to begin in late October or early November this year.
Quest said the hotel would offer budget accommodation with luxury finishes at an affordable price. Room rates are expected to start at £110 a night, including breakfast and VAT.
The restaurant, bar and business centre at the hotel will be outsourced and the company is currently in negotiations with several possible operators. The group said it was keen for Quest to become a chain of hotels but added that it wanted to get the first property working properly before expanding in the UK and Europe.