A £25m mixed-use development at an 18-acre site in Merthyr Tydfil, Wales, has appointed two leisure operators.

UK cinema group Vue will operate a 20,000sq ft (1,860sq m), eight-screen cinema at the leisure park, while budget hotel chain Travelodge will operate a 58-bedroom hotel.

Both developments are set to open by spring 2008.

Merthyr Tydfil County Borough Council has selected south Wales-based Atlantic Property Development to develop the mixed-use scheme on the site of the existing Rhydycar Leisure Centre.

The council also plans to appoint a national family public house chain, restaurant and café operators and a ten-pin bowling complex operator.

The existing outdated leisure centre will be replaced with a new 100,000sq ft (9,290sq m) leisure complex, which will comprise three swimming pools – including a 25m, six-lane pool – a large main hall and an adjacent multi-purpose hall, three squash courts, a 50-station fitness suite with a separate free weight area and a health suite with a sauna, steamroom, spa bath and relaxation area.

The site will also include a skateboard park and children’s play area, in addition to town houses and apartments.

Peter Thomas, chair of Atlantic Property, said: “Merthyr will be provided with a superb new public leisure complex, underpinned by a very attractive commercial element.”

Construction company Kier Western and architects Hing & Jones will develop the project, with funding support from Allied Irish Bank.