Croydon Council spent more than £75,000 housing homeless families in hotels in the previous year, an £50,000 increase on 2017/2018.
The Council claims it has been left with no other option, due to the city-wide housing shortage and need to place families as locally as possible.
A council spokesman said: "There is a housing crisis in Croydon and across London, and Croydon Council is doing all it can to proactively tackle spiralling demand and boost supply including buying 250 street properties to rent at genuinely affordable rates to local families, supplying affordable rented homes through developer Brick by Brick and sourcing specialist wraparound homes for vulnerable rough sleepers.
“While in the meantime, when local residents come to us needing emergency accommodation, we always aim to place them as locally as possible, and hotels are one of several kinds of options we use while we find them longer-term homes."
In 2018/19 Holiday Inn Croydon was paid £31,890, Holiday Inn Sutton £5,170, Premier Inn £35,656 and Travelodge £3538 - £76,254 in total.
In 2017/18 Holiday Inn Croydon was paid £2,591, Premier Inn £15,055 and Travelodge £894 - £18,546 in total.
A double room in Holiday Inn costs £60.
According to recent figures, there are 1,743 households in temporary accommodation in Croydon, including 1,257 families with children.
Demand is growing in the borough, with 50% more applications being placed this year than the previous.
The supply of Council run temporary accommodation was reduced further last month as the Home Office outbid the borough for the lease to Stonebridge House, a building in Thornton Heath which can currently house up to 80 families at a time.
The Council will need to move the existing residents out of the Thornton Heath building and find them alternative housing, likely increasing the expenditure on hotels.
Speaking to Inside Housing, Alison Butler, cabinet member for homes and gateway services, said: "The Home Office has breezed into Stonebridge Lodge waving its cash, gazumped our housing team and given local families in need weeks to get out.
"This thoughtless Home Office decision disrupts the families who face having to leave Stonebridge Lodge and the many more for whom we will find it harder to source financially viable and suitable alternative accommodation in the future."
In the 2018/19 period Holiday Inn Croydon, Holiday Inn Sutton, Premier Inn and Travelodge were paid £76,254 to provide temporary accommodation.