Travelodge has signed as the second anchor for the £75m Elwick Place mixed use development in Kent.
Construction has begun on the site in Ashford town centre following signing of an unconditional agreement between Ashford Borough Council, which owns and is funding the development, and developer Stanhope.
A 58-bedroom Travelodge will join Picturehouse, which will run an 897-seat boutique cinema at the scheme, as well as eight new restaurants and cafes.
The scheme is part of a wider £519m regeneration of Ashford town centre over the next five years.
The investment will generate around 250 jobs, with lead contractor Lendlease expected to deliver the scheme by Christmas 2018.
John Hardy, development manager at Travelodge, said: "Our existing hotel at Eureka Leisure Park has performed strongly since it opened 17 years ago, so we are delighted to now be part of the fantastic new leisure scheme in Ashford town centre."
Gary Bourne, development director at Stanhope, said: "Picturehouse and newly announced Travelodge will attract many new visitors and will enhance Ashford's leisure and tourism offer."
Ashford Borough Council leader Gerry Clarkson added: "This project may well be looked upon in the future as the turning point where this local authority actually became a serious business enterprise in which all members of our population reap the financial benefit from our ambitious economic activities."
Videos from The Caterer archives