A Hilton hotel is expected to be built next to Sunderland's home ground the Stadium of Light.
The project is being led by newly-formed company Sunderland FC Developments after the city council acquired the land in between the Sunderland Aquatic Centre and the Premier League club's Black Cat House office block.
"This is a very exciting development for Sunderland and a statement of confidence in our city and its future, by arguably the most famous hotel chain in the world," City council leader Paul Watson told the Sunderland Echo.
"Having such a quality hotel on Stadium Park will have a tangible economic impact on our city, and particularly its city centre."
It is understood that a planning application will be put forward next month.
