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Budget hotel chain Premier Inn will open a new property in Stratford, near the Olympic Stadium.
The new hotel will also be close to the new Stratford International train station, which opened in December.
The 267-bedroom Premier Inn is due to open in time for the Olympics in the summer of 2012. It is the 13th new property to open as part of the £160m expansion planned for London in preparation for the games.
Other locations due to open in time for 2012 include a new 251-room Premier Inn in Old Street, a 247-room hotel in Waterloo and a 400-room property at Heathrow Terminal 5. In total, Premier Inn will have 59 hotels and 8,374 rooms in London by 2012.
John Burton, director of Westfield Stratford City, where the hotel will be based, said: "The hotel will be in a prestigious location adjacent to the International Station. Westfield Stratford City has unrivalled connectivity and the opportunities that offers in terms of catchment are unparalleled.
"We are creating a new metropolitan hub which will transform east London for the wider community, prompting increased investment and business activity in the area for years to come."
According to Premier Inn, it will be the largest provider of budget hotels in London by the 2012 Olympics.