A TAXPAYER-funded hotel that will create 40 new jobs in a Hampshire town has been approved.

The new multi-million Premier Inn in Fareham above Thackeray Mall in Fareham Shopping Centre will have 85 bedrooms.

The hotel would replace the vacant offices at the rear of Fareham Shopping Centre above the existing Waterstone’s unit.

Cllr Séan Woodward, the leader of Fareham Borough Council, said: “I am so pleased that the hotel has been approved, it is certainly the right thing for the town centre and will get a good investment by the council that will give a good rate of return to the taxpayer.

“It will certainly help to develop Fareham’s night time economy and will help attract visitors and business to the town and sends a clear signal of the council’s commitment to, and confidence in, the future of the centre.”

Derek Griffin, regional head of acquisitions at Premier Inn, said: “Fareham town centre is a location where we’ve been wanting to invest for some time so this is excellent news.

“This application is a really effective way to bring a new Premier Inn right into the heart of the town centre and we’re looking forward to getting going with the scheme and opening our doors to guests as soon as possible.”

The investment forms part of the borough council’s property portfolio which sees a £4.5 million return every year.

Chris Beckerman, managing director of Roubaix Group, who lease the centre, said: “This is great news for Fareham and paves the way for valuable investment into the shopping centre and the town as a whole. “