Leicester City Council today confirmed the conditional sale of the former Granby Halls site to Tigers Rugby Club for a 165-room hotel.
City mayor Sir Peter Soulsby has formally agreed to the freehold sale and given the go-ahead for senior officers to prepare the necessary paperwork.
Tigers want to build a £22 million development including a five storey hotel on 1.7 acres of land currently used as a car park next to the Welford Road ground.
The plans also include car parking for hotel guests and enhanced Leicester Tigers conference, corporate and supporter facilities.
Leicester City Council agreed to sell the Granby Halls site last year.
It used to be home to a popular live music and sports arena.
The proposed hotel and site redevelopment has been led by national construction consultancy Pick Everard, whose head office is in Leicester city centre.
In June Tigers chief executive Simon Cohen said: “As UK rugby’s best-supported club, sport continues to be a driving force in putting this city on the map and the fact that we will be able to offer top-of-the-range accommodation will enhance the city’s strong sporting profile.”
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Duncan Green, of Pick Everard, said building a “high-quality” hotel at Tigers would significantly strengthen the club as a sporting, leisure and community destination.
Tigers are planning for the development of the site to be completed in time for the 2019/20 season.
The club ended the 2016/17 campaign with a record 13th consecutive appearance in the knockout stages of the Premiership as well as winning the Anglo-Welsh Cup for a third time.
They also celebrated a record 374,000 ticket sales for home games at Welford Road this season – the biggest ever recorded by a British rugby club.