Priority Sites and Wembley-based Starboard Hotels have won planning consent for an £18m mixed use development in Gateshead.
The development, close to Gateshead Quayside, will provide 40,000 sq ft of office space and a 202-bedroom Holiday Inn Express hotel.
Starboard managing director Paul Callingham said ongoing regeneration of the area, including Terrace Hill’s 1.5m sq ft Baltic Quarter, would lead to greater demand for affordable accommodation.
The scheme, designed by The Harris Partnership and ICA Architects, is due for completion in early 2010.
Holiday Inn Express is a part of the Intercontinental Hotels Group.