Premier Inn, the UK’s biggest budget hotel chain, has announced a deal for two new hotels at London’s leading airports, creating a total of 1,030 rooms. Premier Inn will lease the hotels from companies owned by the Arora Family Trust, which has secured funding for both sites. Development has already started on site at a location close to Heathrow, Terminal 5, to develop a 400-bedroom Premier Inn hotel, funded by Aviva. It is expected to open in the next 18 months. At Gatwick’s North Terminal, Prupim is funding a 630-bedroom Premier Inn which will be the largest in the Premier Inn portfolio. Work is yet to start on site and the hotel is expected to open in the next two years. “The success of the budget airlines has shown that there is an increasing demand for low-cost travel,” said Derek Griffin, head of acquisitions for Greater London, Whitbread Hotels and Restaurants. “That includes accommodation and we are in a prime position to capitalise on this. These are fantastic prime sites at the UK’s two largest airports and, with funding secured, show once again just how attractive an investment proposition Premier Inn is.” The new hotels form part of Whitbread’s plans to grow its Premier Inn portfolio across the UK to 55,000 rooms; initial plans for both sites were announced by Whitbread in September 2009.