Travelodge made the announcement today saying the decision to reinstate Hearn had been made by the Board after a successful injection of capital into the business which claims to be the first budget hotel brand to launch in the UK when it was founded in 1985.
Hearn will now return to the role he held from 2003 and 2010 on a permanent basis and as a result Parsons will now leave the business on Friday 20 April.
"During recent discussions regarding our financial restructuring, the Board has expressed their wish for me to lead the business once again. Clearly, as recently has been said, there cannot be two captains running a ship and as a result Guy has decided to leave the company," Hearn said.
"I would like to thank Guy for the great contribution he has made over the last eight years at Travelodge. Guy has been an architect of our successful growth strategy and a true innovator. He will leave behind a business which has very strong plans for improvement and growth," he added.
Keith Hamill was chairman of the board during Hearn's previous tenure as chief executive and as a result of this change will now resume this role from his current position as deputy chairman.
In May 2010 Parsons was originally named as Hearn's successor at the company, which operates over 500 hotels across the UK, Ireland and Spain.
Speaking after the announcement, Parsons said it was the right time to step down. "I have been privileged to be the company’s chief executive for the last two years and I am proud of all that we have achieved in that time. I would like to thank the management and staff of Travelodge for their support and I wish the business well for the future," he said.
Travelodge plans to grow its estate to 1,100 hotels by 2025 and is opening 41 hotels this year. It currently claims to be the largest hotelier in London and recently opened its 500th hotel at London Stratford, near to the new Olympic stadium.