A £20 million modern resort hotel is to be built by Butlins at its site in Minehead, subject to planning permission.
If approved, the new hotel will create up to 100 new jobs.
Butlins is expected to submit a planning application for the new resort hotel to West Somerset Council in January as part of a regeneration scheme which will see some older accommodation replaced.
Work recently started on a £16 million re-development to provide improved holiday accommodation on part of the Minehead resort.
The proposed hotel will complement this development by providing a greater variety of accommodation and an improved experience for visitors.
If planning permission is granted, the two developments will maintain the current number of bed spaces available at the resort.
Head of retail sales Allan Lambert said: “Guests tell us that they would welcome both the flexibility and convenience of holiday accommodation in the form of a resort hotel at the Minehead resort.
“The re-development plan has taken account of feedback from guests and the new resort hotel has been designed to appeal to families. This type of hotel has worked well at the Bognor Regis resort and we think Minehead would also benefit from a modern resort hotel.”
The news came as sister brand Warner Leisure Hotels confirmed that three members of 1970s pop family The Osmonds are due to perform at Bodelwyddan Castle in North Wales next September 19. Prices for the three-night Osmond Brothers Star break start at £314 per person based on two people sharing a standard room.
Fifty Platinum VIP Experience packages are available for an additional £50 including best seats in the house, guaranteed reserved VIP dressed table, complimentary drink, bottle of Champagne per couple, VIP waiter service and an opportunity to meet the stars of the show.