A new 120-bed hotel and restaurant will be built at Walsall’s Waterfront creating 60 jobs.

Leisure firm Whitbread is expected to start work later this year on the seven-storey Premier Inn, which is bringing a welcome jobs boost to the town.

Last night’s unanimous decision to allow the hotel to go ahead has come as a relief to town chiefs who feared a makeover of the Waterfront, to include shops, homes and offices, could stall in the credit crunch.

Dr Peter Cromar, chief executive of Walsall Regeneration Company, said: “This is great news and shows we are committed to redesigning the Waterfront despite the hard economic times.”

Councillor Mike Bird, chairman of the development control committee, said: “I welcome Whitbread with open arms to Walsall and to the new Waterfront development. This shows companies want to be in Walsall and are willing to invest in the town. At a time when there is a great deal of gloom this is a massive boost and will see the creation of a number of new jobs.”

The Premier Inn will sit between Wolverhampton Street and the town arm of the Walsall Canal, just a few minutes walk from the town centre.

The development looks set to mirror that of Whitbread’s involvement at the Low Level Station in Wolverhampton, where its hotel and Bluebrick hotel were the first businesses to open on the historic site.

A large car park called the Park Hedge Building will also sit opposite the hotel and is expected to be completed at the same time with space for 630 vehicles.

The hotel will include one of the chain’s Table Table restaurants and a bar.

Developers Urban Splash were given planning permission for Phase One of the Waterfront redesign in 2006.