Stoke-on-Trent City Council's cabinet has approved plans to invest in bringing a multi-million pound 4* hotel to Hanley.
Discussions are already underway between the authority and an operator for the facility, which is planned for the Smithfield site - which the council owns.
The development has already been earmarked for grant funding from the Stoke-on-Trent and Staffordshire Local Enterprise Partnership (SSLEP), and now cabinet members at the council have agreed to make up with remaining finances with a loan.
Council leader Dave Conway said: “This is fantastic news for Stoke-on-Trent and further shows the huge progress we are making to bring investment and create jobs in the city. Stoke really is on the up and this shows the increased leadership and confidence in our city.
“The work being done across the council to make this happen is really paying off and I want the benefits to be felt across the whole of the city as can be seen in Stoke where council staff have remained in the town.”
Deputy council leader Abi Brown said: “A hotel will not only be a massive boost for tourism in Stoke-on-Trent particularly as we look to bid for UK City of Culture status for 2021, but this is a major scheme that will help to bring additional investment to the city, create jobs and transform the city centre.
“Quite rightly, we have agreed as a cabinet that we will do all that we can to facilitate these deals to make them happen. Our Make it Stoke-on-Trent and Staffordshire investment team are continually working behind the scenes to attract big investors into the city and their work is really reaping rewards.
“This approach re-enforces our strategy to grow business rates, bring more jobs to the city and generate income for the city council to help pay for services within the city.”
Stoke-on-Trent and Staffordshire LEP chairman David Frost said: “The plan for a hotel development is a clear sign of the growing confidence in the economy of Stoke-on-Trent and North Staffordshire as an area. We are pleased to be working with the city council to secure the investment in this development.
“It’s testament to the hard work by the city council and LEP partners to continue to demonstrate the huge potential of the area and provide every support for businesses to locate here.”