The former Robin Hood Hotel, Newark, will become a new Travelodge.
Work to transform the derelict former Robin Hood Hotel, Newark, into a new hotel will start in the next few weeks.
Scaffolding will be erected on the front façade of the existing building in the first of two phases to create a new Travelodge, which is expected to be completed for summer next year.
Work will initially concentrate on the conservation of the Grade II listed structures and, from January next year, will continue to create a new 66-bedroom hotel.
There will also be three commercial units, possibly including a gym, café and restaurant, built on the site which will complement the hotel.
A two-way traffic system will be maintained on Lombard Street throughout with vehicles travelling on the eastbound lane restricted to one lane until January.
The street is scheduled to be closed for one day only during the construction phase although motorists are being advised that it may be necessary for additional closures. These will be kept to a minimum.
Traffic coming from the NCP car park on to Lombard Street will be restricted to left turn only during this time.
The £6.6m development is led by a joint venture company RHH Newark Ltd which was set up by Newark and Sherwood District Council in partnership with the current owner of the existing buildings, MF Strawson Ltd.
Both are making a contribution of £3.3m each, of which two-thirds will be returned when the Travelodge element of the development is sold on to investors.
Each will retain a share of the leisure units with each party having the option to buy, or sell, the long leasehold interest in the units.
In each scenario for the council, it is projected to either receive a full return on its capital investment or receive a revenue return of 6% in rental income.
The proposals will generate up to 70 new jobs.
The Robin Hood Hotel closed 20 years ago.