Celtic Manor Resort has submitted a planning application to build a budget hotel near the new International Convention Centre Wales, in a bid to fill a shortfall of bedroom accommodation in the area.
Plans for a new 154-bedroom hotel, with a drive-thru Starbucks will help the resort the plug a gap in the golfing market.
The resort currently turns away around £500,000 a year in golfing visitor revenue alone due to the lack of bedroom space in the local area.
The proposal is for a three and four-storey building, with the hotel covering 7,498 sq mtrs and the 50-cover, single-storey drive-thru restaurant taking residence on the ground floor.
The report, which has been prepared by Arcadis, a design consultancy, said that the average occupancy at both Celtic Manor Resort and the adjacent Coldra Court Hotel is more than 90%, and therefore the new budget hotel will held to accommodate more events, which have previously been lost to other major UK cities.
It is thought the new hotel would be positioned in the three-star market.
The plans, which have been jointly lodged by Broadhall (Coldra Woods) Ltd and Idris Davies Ltd, are for full consent for the proposal, which if granted will be built on fields adjoining the current Coldra Court Hotel on the A48 at Langstone.