Travelodge will join cinema chain The Arc as an anchor of the scheme that will see the first branded budget hotel open in the South Yorkshire town.
Travelodge has exchanged a long-term deal with regenerator Muse Developments and Rotherham Council for the development which is set within a public square, complete with a new pedestrian bridge connecting the scheme to the wider town centre.
Construction work is expected to begin next year.
Dan Needham, development director at Muse Developments, said: “Bringing a major occupier in Travelodge to Forge Island further highlights our collective commitment with the council to create a connected, innovative and inclusive scheme that brings people back to the town centre.
“We’re working hard to drive investment and growth to benefit the Rotherham community, along with providing a range of employment opportunities too. Forge Island represents what can be done when the best of the public and private sector come together with a clear vision and we’re looking forward to bringing the scheme forward in due course.”
Tony O’Brien, Travelodge UK development director, said: “We are delighted to be opening our first hotel in Rotherham at Forge Island.
“This development is our 23rd local council hotel partnership.
“This type of partnerships is of huge benefit to local communities as it helps regenerate vacant space and supports inward investment.
“There are no branded budget hotels in the centre of Rotherham and this hotel will help attract new visitors to the area.
“This is great news for the local economy as research shows, customers will spend on average double their room rate with local businesses during their stay which can equate to an annual multi-million pound boost for the Rotherham economy.”