A new "super-hostel" is to be built as part of a £3.2m leisure complex in the National Forest.
The site will also house a camping and caravan park at Moira, in the centre of the forest that covers parts of Leicestershire and Derbyshire.
Managers believe the hostel, which will cost £1.78m to build, will attract about 12,000 overnight stays a year, mainly from schools and families.
It is hoped that the hostel will be open to visitors by Easter 2007.
"The hostel will bring many more people to enjoy the forest, from all parts of the Midlands," said Sophie Churchill, chief executive of the National Forest Company.
"Moreover, by enabling more overnight stays, it contributes to the sustainability of the Forest as a visitor attraction - people can see more with fewer journeys," she added.