Plans to re-develop Waterside Cornwall, a country club and holiday park near Bodmin, have been approved by Cornwall Council.
The project will include a new, 10-bedroom boutique hotel with spa and wellness centre as well as enhanced restaurant, wedding and conference facilities.
The hotel will be created by extending an existing house, where most rooms will have a balcony or terrace overlooking the lake. It is anticipated that the hotel will open in 2022.
London-based operator and developer Prime Resort Development has owned the resort since acquiring it in 2017.
The transformed Waterside Cornwall will also feature 118 new eco-lodges, a 25m swimming pool, a children's play pool, an indoor climbing centre, a sports hall and outdoor tennis courts. Landscaping proposals include the creation of a geological trail and arboretum, a sculpture area, nature trails with wildlife hides and ecological habitat creation. It is anticipated that the whole scheme will be built in several phases over the next three to five years.
Ian Slater, resort director, said: "Waterside has already benefitted from investment by the new owners over the past year. We are thrilled to get the green light for the new development which will mean the resort has a really exciting future."
The project is being overseen by Peregrine Mears Architects. Practice director Peregrine Mears, said: "We are really delighted to see Cornwall Council give their support to this project. It represents a very positive step for tourism provision in the south west and we're excited about the positive effects it will have on the local community."