Plans to expand the Butlins complex in Bognor, one of the county's best known holiday spots, have been welcomed by tourism chiefs.
The firm wants to build a 160-bedroom hotel and said it would mean a boost for tourism and economic regeneration.
Arun tourism manager Richard Edwards said: "It will help to sustain the viability of the district's largest tourism operator and will provide visible, tangible evidence of quality improvement in the local tourism economy.
"It will also attract high-spending visitors to Bognor, to the benefit of local traders, and will provide a highly-visible vote of confidence in the attractiveness of Bognor as a place to invest."
Butlins is asking for permission to demolish redundant buildings and build a five-storey hotel with 160 bedrooms, restaurant, health spa and conference room.
There will also be room for car parking and landscaping.
The application is due to be decided at a meeting of Arun District Council's development control committee tonight.
Officers are recommending that councillors give the plans conditional approval.
A report to councillors said: "The erection of a five-storey hotel within the existing Butlins complex will have a positive visual impact, especially when viewed from the promenade."
The report says the design includes decorative details shaped as lighthouses.
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