The University College of Football Business in Burnley is proposing to turn the town's Keirby hotel into student accommodation.
The higher education institution will spend £500,000 refurbishing the hotel, owned by Essex-based Ciragan Investments, into 45 en-suite bedrooms ready for September.
The new UCFB Halls of Residence will be called The Crown and include a gym, games room, study area and UCFB's student union. It is UCFB's second official halls of residence in Burnley, joining the Sparrow Hawk. The institution also works closely with town landlords to provide accommodation alternatives for students.
UCFB opened in September 2011 and offers three BA degrees in football business and finance, football business and media and football business and marketing. It currently has 60 students and is capping its 2012 intake at 200.
Philip Wilson, provost and chief executive of UCFB, said: "From our inception, we knew that UCFB was going to be part of Burnley's long-term future and by investing in the provision of more student accommodation, we're making a real commitment to the town and region.
"It was important to us to invest in the town's existing stock and refurbish some of Burnley's well-known buildings that are no longer in use. The Keirby was the perfect candidate for this – it has needed a new owner and a new look for some time, and it's the ideal location for our undergraduates in terms of proximity to the town centre and campus.
"Our undergraduates will provide a significant boost to the local retail and leisure economies and over the next five years, UCFB will contribute around £7m to the local economy each year. Yet the impact that UCFB has had on Burnley is not merely a financial one – we're giving local young people the opportunity to live and study in their own town, and we have really put Burnley on the educational map both here and overseas."