A £2.3m, 62-room Travelodge is being built in Newport's former City Cinema, as part of a wider £100m regeneration project underway in preparation for the Ryder Cup at the Celtic Manor Resort next year.

The 18-month scheme includes a new £35m university campus, a £25m refurbishment of Kingsway Shopping Centre and a £25m redevelopment of the railway station.

Council leader Matthew Evans said: "The huge scale and diversity of the projects on site in Newport is testament to the enormous potential that the city has. There will be few locations in the UK with such an active and ongoing regeneration programme, particularly during the current economic climate.

"Having such a well-respected and high-profile company as Travelodge making this major investment in the city is a real boost for Newport and recognition of its huge potential as a prime location for business, tourism, and leisure."

John Burrows, chief executive of Newport Unlimited, said: "The regeneration programme promoted and funded by the Welsh Assembly Government, Newport City Council, and the private sector is continuing from strength to strength with projects to increase the number of new jobs, new homes, new environmental improvements, and new education and cultural facilities to stimulate vibrancy, interest and investment in the city."