Work has begun on a multi-million pound redevelopment of a Grade II-listed hotel in Lancashire.
The art deco hotel is a landmark of the resort's seafront
The Midland, in Morecambe, will be restored to become a 46-bedroom hotel with a public cafe-bar, a restaurant and a bath house.
Developers Urban Splash, who bought the site in 2003, are managing the project.
The North West Development Agency (NWDA) is paying £4m of the total £7.1m bill. It is hoped the new hotel will attract investment to the town.
Lancaster City Council has said the landmark art deco-style hotel is central to the town's redevelopment master plan.
It is hoped the new hotel will attract investment to the town
The NWDA has predicted it will bring in an extra £1.2m a year to the local economy.
Lancaster City Council leader, Ian Barker, said: "The Midland is an iconic building for Morecambe and its regeneration will be a potent symbol of the plans to carry forward the development of the central area.
"Making Morecambe a top quality place to live, work and play is the target for all partners investing in the area and the renewal of the Midland is the best start possible."
Helen France, NWDA executive director of development and partnerships, said: "This development will be crucial to lifting perceptions of Morecambe, not only as a visitor destination, but also as a quality environment in which to live and work."
Bill Maynard, director of development at Urban Splash, said his company intended to work with the city council to upgrade the whole of the central promenade site.
The Manchester-based developer is contributing £2.5m of the bill, with £600,000 coming from the Heritage Lottery Fund.
Geraldine Smith, MP for Morecambe and Lunesdale, said she was "delighted" with the news.