Budget brands Travelodge and Lidl have teamed up to bring forward a hotel and supermarket scheme in Newcastle-Under-Lyme.
Supermarket chain Lidl will take the ground floor and budget hotelier Travelodge will occupy the top five floors of the scheme on the brownfield site in the Staffordshire town.
The hotel will have 82-bedrooms, create 20 jobs and represents a £3m investment.
Travelodge, through the employment programme the Local Employer Partnership, has a commitment to employ staff from the local long-term unemployed.
Lidl will be opening a 14,000 sq ft store, creating 25 jobs at a local level.
Paul Harvey, managing director for Development at Travelodge, said: “The budget sector is the place to be in the current environment, with many people trading down as they seek to economise.
“We expect to see a structural change in the hotel industry during the next few years, with people realising that they do not need to spend a fortune on overpriced accommodation to get the quality they want in the locations they need.
“Given the market conditions, it is likely that we will be going into partnership on further sites with the budget supermarkets in the future.”