Travelodge is planning to convert old cinemas and snooker halls into mini hotels with 20 to 40 rooms.
The budget hotel chain is also eyeing up old office blocks in the posh areas of London such as Kensington & Chelsea, Westminster, Fulham and Richmond.
It plans to open 20 Metro guest house-style hotels by 2020. Rooms will be similar in size to a standard double room and they will be run by managers of nearby larger Travelodge hotels.
With smaller hotels, the chain will be able to target more expensive built-up areas, which would have been too costly for larger properties.
Speaking to Air & Business Travel News, Guy Parsons, Travelodge's CEO, said: 'Our desired locations will include office buildings, business parks, major cities, popular holiday destinations and London's affluent Boroughs. Downsizing hotel building requirements will open up hundreds of development opportunities for Travelodge.'
The success of the Metro-style 43-room Travelodge in Edinburgh - one of the company's top performing hotels - and the conversion of 52 'highly profitable' Innkeeper's Lodges have also been contributing factors.
'We have discovered just how profitable smaller hotels can be for us,' said Parsons.
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