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Holiday Inn is currently planning to convert an old car showroom in Wandsworth into a new hotel.
The hotel chain's latest London venue will be located in East Hill and will include 122 rooms.
It will also feature a business academy, as well as a restaurant, bar and lounge, gym and basement parking for 25 cars.
Assael Architecture has won planning permission for the six-storey hotel and work is expected to begin on the venue in the middle of this year, with the hotel opening in 2012.
John Assael, director of architects at Assael, said: "This is a new generation of Holiday Inn hotels that will be a modern and sophisticated addition to Wandsworth town centre and breathe new life into a derelict site."
Last year, Holiday Inn unveiled a new Manchester venue, which was opened by the chief executive officer of InterContinental Hotels Group (IHG) – Holiday Inn's parent company.
Andy Cosslett opened the new Holiday Inn Manchester MediaCityUK, which features 218 bedrooms.