Excavation works have begun for building a second Tŷ hotel in Newport as part of the Celtic Manor's Celtic Collection.
When it opens in the autumn of 2020, Tŷ Hotel Newport will be a 146-bedroom, mid-range hotel with a separate building housing a drive-through Costa Coffee.
The new hotel is being built next to the Collection's Coldra Court hotel in Langstone, and follows last month's acquisition by the group of a former Hampton by Hilton and its rebranding as Tŷ Hotel Magor.
Tŷ (pronounced ‘tee') is the Welsh word for ‘house' and is the new mid-range hotel brand from the Celtic Collection.
Tŷ Hotel Newport is expected to support the expected increased demand for bedroom stock ahead of the opening next month of the International Convention Centre Wales (ICC Wales) at the Celtic Manor.
Russell Phillips, vice-president, facilities and development, of the Celtic Collection said: "We are delighted to start construction of a new Tŷ hotel and add another property to our portfolio… An essential, mid-range hotel also helps us offer a different kind of accommodation for people attending and working on these events as well as those visiting the city and region for other purposes."
City of Newport Mayor, Councillor William Routley, said: "It is very important that we expand our hotels offering in the city to cope with the increasing demand for accommodation brought about by the development of ICC Wales."
Carter Lauren Construction is the principal contractor on the project.
The Celtic Collection includes the five-AA-star, 330-bedroom Celtic Manor Resort; adjoining four-star Manor House with 70 bedrooms; the nearby 148-bedroom, four-AA-star Coldra Court hotel; the 129-bedroom Tŷ Hotel Magor; and the Newbridge on Usk Inn.