Dublin-based hotel group Jurys Doyle is to construct a 340-bedroom Jurys Inn at Heathrow Airport.

Jurys is investing EUR34, (£22m) in the hotel, which will be located within the airport complex, close to Hatton Cross underground station. The hotel operator is taking out a 125-year ground lease for the site with BAA.

Construction is set to commence in the summer and the Jurys Inn Heathrow is expected to open in late 2004. It will be the only hotel in the complex with underground rail connections to London and Heathrow terminals.

Pat McCann, chief executive, said: 'Jurys Doyle has been looking for a suitable entry point to the London Heathrow market for some time and we are very pleased BAA has chosen us to develop this new hotel within the airport complex.'

The hotel group has also announced the disposal of the 90-bedroom, 3-star Jurys Green Isle Hotel in Dublin to the Lynch Hotel Group for EUR11m cash, saying it does not fit into its strategic plan. This follows the disposal of two other 3-star hotels in Ireland in July last year.

Jurys Inn Newcastle opens this month (14 February). The 274-bedroom hotel in St James' Gate. The group has refinanced the hotel, selling it to McAleer and Rushe for EUR28m (£18.2m) and agreed a 35-year operating lease.

A further four Jurys Inns will open between this autumn and summer 2004, in Glasgow, Leeds, Chelsea and Dublin.