The purpose-built, 100-room easyHotel is expected to open in 2019, subject to planning permission.
It will stand in Newmarket Road, less than one mile from Cambridge city centre.
Cambridge will be the group’s third leased site and the hotel will be let on a 25-year lease.
EasyHotel said while the board is focused on accelerating the group’s expansion through owned and franchise hotel development, it will consider leased sites “on a specific and limited basis” for strategic locations.
Guy Parsons, chief executive of easyHotel, said: “Having recently completed a successful fundraising to fund the acceleration of our owned hotel portfolio, this announcement is a clear signal of our intent and ambition to expand our development pipeline, targeting popular business and leisure city centre locations.
“The Cambridge site takes easyHotel’s pipeline of owned/leased development projects to 1,041 rooms, adding one of the UK’s most thriving and popular cities to our network.
“The board looks forward to announcing further opportunities in due course."