A four-star Crowne Plaza hotel is to form part of the £300m regeneration of Chester city centre.
The Chester Northgate redevelopment will include 70 shops, cafés and restaurants, 70 homes, and the hotel with its 600-capacity conference centre.
The 167-bedroom Crowne Plaza deal has been signed by MCAP Global Finance, which through affiliate companies owns a number of IHG-branded UK hotels. Construction is expected to be completed in 2021.
Councillor Samantha Dixon, leader of Cheshire West and Chester Council, said: "I am delighted that we have secured House of Fraser for a major new store in the crucial Chester Northgate development and, at the same time, signed a deal with the owners of the existing Crowne Plaza to relocate them on-site into a brand new, four-star hotel, conference centre and spa, much improving the overall offer of the city.
"Being able to attract brands like House of Fraser, Picturehouse and Crowne Plaza is a measure of the appeal of Chester Northgate to other occupiers and investors and reinforces our ambition to return Chester to its rightful place as a leading shopping and leisure destination."
David Lewis, chief executive of Rivington Land, added: "The commitment from major brands serves as recognition of the huge potential of a revitalised Chester city centre.
"We are now in the process of agreeing terms with other major retailer and leisure operators, who have also recognised the innovative approach of Cheshire West and Chester Council in driving this scheme forward."
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