The budget brand has exchanged contracts with CHG Holdings for its second hotel, this time in Lind Hill in Ryde.
The 41-bed Travelodge will create entry level roles to be filled via Job Centre Plus, and the company estimates its guests will spend £650,000 in the local economy throughout the year.
The hotel is set to open in Spring 2014.
Tony O'Brien, UK Development Director for Travelodge Hotels, said:
Our existing hotel in Newport opened in 2007 and trades very well, so we decided that another Travelodge was needed on the island. Ryde is the largest town, but has no branded budget accommodation, so we are delighted that Travelodge will be the first company to provide this.
The new Travelodge will be within walking distance of the ferry terminals in Ryde, so will provide great value accommodation and we believe that our presence in this family-friendly town will encourage more visitors to come and stay overnight, which will serve as a great boost to local businesses and the economy of the area.
Andrew Turner, the Isle of Wight's MP, said:
The decision to open a second hotel on the Island represents a vote of confidence in the future of our economy by CHG Holdings and Travelodge.
As well as serving the tourism market Travelodge hotels are popular with business travellers, so I am sure that this new venture in Ryde will be just as successful as their existing hotel in Newport. It is a welcome investment.
Les Pink, chief executive of CHG Holdings, added:
As a resident of the Isle of Wight myself, I think the new hotel is a great addition to the island. With the local council are investing £5.2m to boost tourism in the area, this is an opportune time for Travelodge to have a property in Ryde to allow more people to stay and explore this fantastic location.
We are pleased to be working with Travelodge once again, and are delighted that it is expanding its property portfolio along the South Coast.