The Inn Collection Group, a north east-based hotel chain, is set to finance the building of a 42-bedroom hotel in Coatham, Redcar.
Some £6.5m will be invested by the group, with a further £750,000 being put forward in a Government accelerated funding scheme.
The development, which will commence via the demolition of the council-owned RKade building on 4 January, represents a deal that has been met between the hotel operators and Redcar and Cleveland Borough Council.
Councillor Wayne Davies, cabinet member for economic development at the council, said: “It’s fantastic that we have attracted a big hotel chain to the area. This development with the new leisure facilities based at Coatham would really help regenerate the area and would be a huge boost for our tourism offer.”
The project is expected to create 50 full-time jobs once the hotel is operational, with 60 jobs set to flow from the construction stage.
Darren Winter, chair of the Redcar Town board, said: “The town deal board are delighted to have helped support this exciting development with town deal funding provided by the Government.
“It will create a fantastic first impression to visitors, support business, job creation and the wider town investment plan with our proposal of £25m of projects which will be presented for approval to Government in January.”
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