A new 80-bedroom Premier Inn at Cockermouth will create 50 jobs directly and another 25 in the supply chain.
Work is ready to start on The Shepherd’s Hotel and restaurant after Allerdale Council granted planning consent for a new Premier Inn and 200-seater Brewer’s Fayre restaurant.
Nick Johnston, acquisition manager for Premier Inn in the North West and Wales, said: “Investing and regenerating existing hotel sites to offer great quality and value hotels is something we take great pride in.
“The Shepherd’s Hotel will be a great example of that. We are looking forward to coming to Cockermouth."
Construction is due to begin imminently for completion early next year.
The chain already has hotels in Carlisle, Whitehaven, Barrow, Kendal and Penrith, with plans for hotels in Ambleside and Ulverston.