Cheshire-based developer Quorum Estates has signed hotelier Travelodge to lease Castle House in Macclesfield, Cheshire.
The building, on Waters Green next to Macclesfield train station, was originally a warehouse for the silk industry and later used as a shoe factory by Castle Shoes, and then as a printing and design company.
Subject to achieving planning permission, the 15,000 sq ft building will be converted to a hotel with a new extension of 10,000 sq ft for offices and retail on the ground floor.
Paul Wardle, director of Quorum Estates, said: "In December last year we held a public exhibition in Macclesfield, to ensure that the community had an opportunity to comment on the development proposals. The comments we received were positive and we have now submitted the planning application, with a decision expected in the early summer."
Mike Gibson, director at Taylor Young, who are advising Quorum on town planning and heritage matters, added: "This is an exciting opportunity for Macclesfield. Discussions with the council's planning and conservation officers have been encouraging. The scheme accords with the council's overarching strategy for development in the town."