The Buchan Observer understands negotiations to bring budget hotel chain Travelodge into Peterhead’s Chapel Street are close to being finalised.
Last week the brand announced it will open a new hotel in the town as part of a major national expansion.
Now councillor Alan Gardiner, who has pushed to redevelop the vacant Chapel Street properties, has confirmed the firm are close to striking a deal for the town centre tenements.
Bosses estimate the move could bring as much as £2m into the local economy and cllr Gardiner is confident the arrival of another big-name brand - along with KFC - could have a domino effect on town centre regeneration.
Travelodge chief executive Peter Gowers said: “There is a big opportunity to further expand in Scotland.
“At present, the value hotel market in Scotland stands at 14 per cent, compared to 18 per cent in England and more than 30 per cent in the US.
“By 2030, the budget hotel sector could account for almost a quarter of the UK market, with a similar level of growth expected in Scotland.”
As part of this expansion programme Travelodge is in talks about a site to build a 120-room guest house which they believe will bring millions of pounds of revenue into the area as well as creating 16 jobs.
Cllr Gardiner also offered assurances that work to remove the current construction scaffolding is continuing as negotiations continue.