A 63-bedroom hotel and restaurant will be built in the centre of Lincoln after plans were approved by the city council.
Proposals were submitted by Mike Hayes-Cowley, who currently leases the New Theatre Royal, for the hotel on Clasketgate.
Now, councillors on the City of Lincoln Council’s planning committee have approved the plans.
The hotel will be situated at 27-29 Clasketgate, which sits between the New Theatre Royal and Danesgate accommodation.
Within the plans, there is also room for a top floor restaurant pitched as a great stop-off for theatre goers to the city.
The proposals will see the demolition of the existing building on Clasketgate which was formerly used as an office block.
Historic England raised concerns about the demolition within a designated conservation area saying the loss would have an impact on the character of the area.
However, the council’s conservation officer said that the building’s contribution to the appearance of the conservation area is low and the loss would not be a reason to refuse the application.
Mr Hayes-Cowley previously said he didn’t want to put a timescale on the plans if they were approved, however he added that he would like the hotel to be completed sooner rather than later.
Councillor Chris Burke said that the plan would help tourism in the city when it needs it the most.
“I think that this is an improvement on the building,” he said.
“It is also commercially viable and would help bring increased tourism when we need it.”
He added that there is a deficit in hotels and it would help visitors who want to come to events such as the Christmas Market.
A new six storey building that could be turned into a hotel, apartments or student flats has been approved earlier this year next to this future development as well.