The company that owns The Grand hotel in Brighton been named as the preferred bidder for a site once earmarked as a park and ride.
De Vere plans to build a four star hotel, leisure club and offices on the site of Patcham Court Farm by the junction of the A23 and A27 Brighton bypass.
The announcement comes after Brighton and Hove City Council agreed to sell the 3.6 acre site at a meeting of the council’s cabinet.
De Vere will buy a 125-year lease in a deal that the council said would create more than 250 jobs.
Council leader Mary Mears said: “This is good news for the city’s economy.
“It means that a site which has remained derelict and unsightly for many years can now be redeveloped and provide new employment.
“The plot, which has easy access next to the bypass, will offer facilities for local people and contribute to our economy.
“The sale of the land on a long lease also provides the council with capital that can be used to support council funds for the benefit of residents.”
The 128-bed hotel will be one of more than two dozen venues in the De Vere Village Hotels chain.
In all De Vere runs 65 hotels. At Patcham Court Farm it plans conferencing, banqueting and community facilities, a restaurant, bar, Starbucks café, a health and fitness centre with swimming pool, spa, sauna and gym.
The company also plans to incorporate 4,900 sq ft of offices and will now seek planning permission for the development.
The council said that, despite the recession, it received eight bids for Patcham Court Farm when it was marketed to developers.
Bidders were assessed on a number of criteria, including their track record, quality and ability to deliver large projects.