Worthington Properties has started work on an 83 bedroom Premier Inn hotel in Mold Road on the route into Wrexham town centre.
The new hotel will open in mid-2013 transforming a previously derelict two acre site. The hotel has been designed to meet a BREEAM rating assessment of 'very good'.
Cllr Phil Wynn of Wrexham Council said: "The new hotel in the town centre is long overdue and will greatly enhance the visual appeal of a site which has been a Mold Road eyesore for far too long."
Russell Worthington, development director of Worthington Properties, commented: "Premier Inn is a well-established hotel chain offering quality accommodation across the country and we are delighted to work in partnership with them to deliver a new hotel in the town, which will also act as a catalyst for further regeneration.
"As a business we are carving out a well-deserved reputation for delivering projects of this kind and have recently completed a £10.5m Premier Inn in Preston and two Travelodge hotels worth £25m in Manchester and Liverpool."