The hotel chain Premier Inn has been chosen by East Devon District Council to redevelop the site of Elizabeth Hall in Exmouth.
Its proposal for a 60-room hotel with a cafe/restaurant was thought to be in the best interests of the town, in terms of the new jobs it would bring and the impact on the seafront area.
The other bidders were a residential provider and a community group, Friends of Elizabeth Hall.
Premier Inn is expected to submit a detailed planning application by February 2013, with work to start on the site by the end of next year.
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