Travelodge has announced plans to open four new hotels in Merton generating 80 jobs and bringing up to £8m to the borough.
The chain, which has one hotel in the borough on Epsom Road, Morden, is looking for sites to develop in Mitcham, Morden, Wimbledon town centre and Wimbledon Village.
It is not the first time the hotel company have voiced their intention to open more hotels in the borough.
In March 2012 the company announced ambitions to open six hotels in the borough by 2025 starting with plans for a 150-room hotel in Wimbledon town centre and a 110-room hotel in Wimbledon Park.
A further three 90 bed hotels were outlined for Mitcham, Morden and Colliers Wood as well as a 40-room hotel in Wimbledon Village.
The latest plan makes provision for four hotels in the borough’s key town centres but no sites have as yet been formally identified.
Grant Hearn, chief executive of Travelodge Hotels, said: "Our existing hotel in Merton performs strongly all year round.
"Whether it be business travellers, leisure customers or families coming to visit loved ones, we are regularly achieving high occupancy levels.
"It is clear that the outer London Boroughs have a lack of good quality, affordable hotel accommodation.
"Many have large employment clusters and impressive regeneration proposals yet have an undersupply of hotel rooms.
"Our target locations in Merton are all suitable for a Travelodge hotel and we hope to be able to make further announcements about specific sites soon."
If successful, the company have said the additional four hotels would create 80 jobs and generate upwards of £8m for the local economy.
The company has said it hopes to open an addition 145 hotels across London Boroughs as part of its capital expansion plans.