Overlooking Paignton Green, on the site of the former Park Hotel on Esplanade Road, the four-star hotel will have 161 bedrooms, leisure facilities and restaurant. It is expected to attract thousands of visitors a year and boost annual spending by an estimated £2m.
Next door, on the site of the old Lighthouse nightclub, a 115-bedroom hotel will be operated by Mercure’s sister brand Ibis Styles, if planning approval is granted by Torbay Council.
Both brands are part of Accor, which has a network of almost 5,000 hotels in 110 countries around the world.
James Koh, chairman and chief executive of the Fragrance Group, said: “These agreements are the latest step in our multi-million-pound investment programme in Torbay.
“Global brands such as Mercure and ibis Styles have an extremely loyal customer base around the world and this announcement means they will be able to attract thousands of new visitors to Paignton, creating new jobs, year-round, for local people and boosting the local economy by many millions of pounds a year.”
Philip Lassman, VP Development, Accor Northern Europe, added: “We are delighted to be partnering with the Fragrance Group on the opening of a new Mercure hotel in Paignton.
“Mercure is an ideal brand for this hotel, as alongside the internationally recognised standard of quality and service, Mercure hotels are rooted in their local community and offer touches specific to that area. We are confident that this will be recognised and valued by guests visiting Paignton.”