Investment in the regeneration of Felixstowe is set to continue with approval being granted for a new budget hotel.

The modern 60-bedroom hotel will replace one of the resort’s oldest, the Ordnance, which will be demolished to make way for the multi-million pound project.

Premier Inn officials told Suffolk Coastal councillors that work could start this autumn, with the new hotel opening summer next year.

It follows an announcement by JD Wetherspoon for a new £2.6million restaurant and bar, the opening of the £18m Felixstowe Academy, a new £3.5m medical centre, £2m seafront park, and work set to restart on the £2.7m Spa gardens refurbishment.

Commenting on the go-ahead for the Premier Inn, Mayor of Felixstowe, Graham Newman said: “I am delighted that a national hotelier has chosen Felixstowe for a significant investment and we look forward to appearing on the Premier Inn map and website which attracts worldwide attention.”

Mr Newman said Felixstowe had a host of great events and hoped a way could be found to work with hotels such as Premier to create offers to bring even more people to the resort.

Premier Inn says the venture could attract 20,000 guests a year, bringing extra trade for the resort’s attractions, pubs, shops and restaurants.

Planning case officer Phil Perkin said it would provide low budget, modern family holiday accommodation.

He said: “It is also fair to say people have comfort and security in using chain names for accommodation and it is a brand that is trusted and popular.

“The desire for such an offering has been raised for a number of years but until now there has not been the interest from a national party or a suitable site available.

“The application will fill a hole in the existing market and enable Felixstowe to compete against other resorts and move more to being a holiday destination rather than a day-trip destination.

“It would support other improvements in the town such as the Seafront Gardens, the new pier, Martello Park and shared space scheme in Hamilton Road, and underpin work undertaken by Felixstowe Futures.”