An artist's impression of the proposed Premier Inn development on the site of the former Royal Gatehouse Hotel in Tenby.

Work on the 61-bedroom hotel and restaurant is expected to start soon and is due to be completed by the end of 2013.

The site is one of three across south Wales which have been acquired on behalf of the company by property services company DTZ. The others are at Newport and Barry.

Andrew Gibson, senior surveyor at DTZ in Cardiff, commented: "Premier Inn identified the South West and Wales as a key market for growth and we are delighted to have been involved these deals, taking them closer to their target of 65,000 Premier Inn bedrooms by 2016