NoCo will set out to offer an alternative to what it describes as the 'bland, cookie cutter’ template for hotels outside of London, allowing guests to book and check-in using an app.
Each venue will partner with local restaurant operators to develop destination bars and restaurants and create communal spaces to host musical events.
NoCo hotels will have 150-200 rooms each, with nightly rates for under £100.
Ennismore is planning to open 25 NoCo sites in key cities across the UK, with the first scheduled to launch in 2018.
Sharan Pasricha, CEO of Ennismore, said: “Travelling habits and demands have changed; as has the way that people now use hotels.
“Our aim is to raise the bar for affordable hotels and provide business and leisure travellers with a stylish alternative to bland, cookie cutter hotels so often found in cities outside of London.”
Budget hotels account for more than half of the UK’s hotel development pipeline, with operators such as Travelodge, Premier Inn and EasyHotel all set for expansion.
Ennismore said it was aiming to offer travellers an alternative to what it termed ‘overpriced’ and ‘underwhelming’ budget offerings.
The London-based firm acquired The Hoxton Hotel in 2012 and is in the midst of a £500m global expansion of the brand.
It has since launched Hoxton outposts in Holborn and Amsterdam with further sites planned for New York, Paris, Chicago, and London's Southwark.
Ennismore bought Scotland’s iconic Gleneagles Hotel last year and has since launched a 'bold and creative' revamp of the site.
The London-based firm is also planning to launch several standalone restaurants across the UK.