The proposals will see an Ibis Styles hotel built on a vacant site on Hunters Row, north of the town centre.
The hotel will help provide local jobs, improve the night-time economy and increase tourism, according to the application.
It will see four full-time and 16 part-time jobs created.
It will also make use of “largely redundant” retail space. Several businesses have moved out of premises in the north end of the town centre in recent years, leaving a number of empty retail units.
Stafford business leaders and residents welcomed the plans when they first emerged.