Back in 2010 the budget hotel company announced plans for a Cannock hotel as part of a £61m investment to develop 10 hotels across the UK.
Cannock Chase District Council granted planning permission for the hotel, hailing it as a huge boost for the town. It was thought the project would create dozens of permanent jobs and more than 100 temporary positions during construction.
However, the property on Watling Street at Gallan Park has remained untouched, prompting questions about its future.
Travelodge bosses have now revealed the decision to withdraw was due to issues with the site, but insist they have not given up on bringing a hotel to the town, according to the Express & Star newspaper.
Nick Dines, spokesman for Travelodge, said: "We had an agreement in place with a developer, but unfortunately they were not able to bring the site forward.
"We are still very, very keen to have a site in Cannock. We were ready to go with this one until the developer said they could not develop it. But we are now looking elsewhere in Cannock for a replacement location."
Cannock Chase District Council's 2014/2015 end of year performance report stated that the scheme had not been implemented due to financial problems and the authority confirmed Travelodge has pulled out altogether.
The site is now being marketed for a range of commercial uses.
The district council also revealed it had missed its two major tourism targets this year, including increasing the number of tourism beds in the area.
Currently there are around 1,235 spaces available for visitors - 25 less than in 2013. Those figures are expected to be boosted after Premier Inn submitted a planning application last month to expand its hotel in Watling Street. The number of rooms would increase from 60 to 78 as part of a £1.4m investment, which would also create additional jobs.
The plans are currently under public consultation and the council will make a decision on the proposal at a later stage.