A new Travelodge will form part of a £20 million retail and leisure development in Manchester Piccadilly.
The 157-room hotel will have a 102-seat Bar Café and create 31 jobs.
It will be the budget chain’s 12th hotel in Manchester and the fifth in the city centre. The development will boost the company’s rooms to 763 in the the city.
Construction work on the site of a Woolworths fire in 1979 is expected to finish in December and will also include a Morrisons convenience store plus Zizzi and Nandos restaurants.
Travelodge development managing director Paul Harvey said: “Manchester has traded very well over the past five years, with a thriving leisure offering thanks to its strong retail offer, vibrant social scene, the Manchester Arena and the continued success of the city’s famous football clubs, City and United.
“When you also account for a strong business sector, boosted by the MediaCity UK development and arrival of the BBC at Salford Quays, the demand for good quality, value accommodation in Manchester city centre is growing.
“Our new Travelodge fronting Piccadilly Gardens is perfectly located for Manchester’s great shops, bars and restaurants and is only a couple of minutes’ walk from Manchester Piccadilly train station.
“With two great restaurants and the Morrisons’ supermarket on site, it will be a fantastic place for our customers to stay.“