The hotel is being constructed at 11 Station Road despite initial backlash from the local community.
It is set to have 82 rooms along with new retail units on the ground floor.
A planning application was originally received by Havering Council in September 2022 and rejected in January 2023 but was later approved on appeal by a planning inspector.
Hornchurch and Upminster MP Julia Lopez said at the time she was “disappointed” at the decision, while one resident said: “I think it’s disgraceful. I don’t think the town has ever had a hotel and I don’t see why we need one now.”
Travelodge has a 25-year lease with developer London Iron Works.
Daniel Harris from London Iron Works told the Recorder: “The development is progressing well and we hope that the hotel will open in early 2026.”
The developer has provided computer generated images as an insight into how the hotel is likely to look from the outside.
On the development’s progress, Mr Harris added: “The demolition and site clearance is now complete and we are currently undertaking ground investigations and preparing reports.
“We hope to start actual construction in a couple of months.
“Hoarding should be erected shortly.”
Last October, Tony O’Brien, UK development director at Travelodge, said that the chain is “delighted” to open “the first branded budget hotel” in Upminster.
It will be Travelodge’s second site in the borough, with its other in Romford.
He said: “It will attract thousands of new business and leisure visitors each year, who will spend hundreds of thousands of pounds in local shops, restaurants, cafes and attractions.”
Ms Lopez said she has received an assurance from Travelodge that the hotel will not be used to house asylum seekers.
She wrote to Jo Boydell, boss of the hotel company, to address “social media speculation”.
Ms Lopez said: “I’m really glad to have secured assurances from Travelodge about the future of the site as well as their desire to make a positive contribution to the local Upminster high street.”