The Hoxton in Shoreditch, East London, is set to become a flagship property of a new hotel chain being created by the co-founder of Prét a Manger sandwich chain.

The 205-bedroom Hoxton hotel, which was opened in September 2006 by Sinclair Beecham, has been branded a 'luxury budget' hotel, offering rooms for as little as £1 and ranging up to £199 a night as demand increases. The hotel includes a Grille Restaurant, and six meeting and event rooms.

The next hotel will be built on the Edinburgh's Royal Mile, followed by properties in Glasgow, Leeds, Bristol and Birmingham over the next four years.

The Edinburgh site, to be built on the site of a former department store, is subject to planning consent. If the application is successful work is expected to begin in the new year, with the view of opening in 2010.