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The hotel will be part of the socialising and craft quarter as part of the £14m renovation plans for the town centre.
The quarter, bordered by Montagu Street, Tordoff Place, Queen Street and Dalkeith Place, will be given a £3.1m facelift with luxu
ry town houses and space for restaurants along Queen Street.
Kettering Council deputy chief executive Martin Hammond said: "Planning has already been approved for a hotel which will have a gym and restaurant on the ground floor and 45 bedrooms.
"The developers have been in talks with a number of potential hotel chains – it is just a case of finalising a deal.
"This area has the pubs around the Horsemarket and furniture shops around the back so it does not need too much work doing on it."
The Headlands quarter will be one of the areas undergoing only minor changes but will have cash available for the general appearance of the area.
This will be done by adding Victorian features to the streets such as railings in keeping with houses in the area.
The quarter is the smallest of the eight designated areas and is part of a conservation scheme, but will have developments to improve the road and pedestrian routes to the station quarter.
One of the areas receiving the most work is the Yards, which will be developed into an intimate shopping area with small independent shops, flats and offices.
Mr Hammond said: "The opportunity to have residential, mixed with offices and shops, will create a very different feel than on the High Street.
"What we wanted to do was create a shopping area similar to places like York to make the most of the older buildings in the area."
All three areas are planned to be finished by 2016 and work will start on them next month.
Jonny Coxell, of Lewis Road, Kettering, said: "If there are quality places for people to stay and eat in the town it will encourage people to come here.
"I think if this all goes ahead we will have a town centre to rival Northampton, Milton Keynes and Peterborough."
The final three areas of the town's redevelopment will be featured in tomorrow Evening Telegraph.
The plans will be discussed at a Kettering Council planning committee meeting in Sheep Street from 7pm on Wednesday.
The full article contains 411 words and appears in Northants Evening Telegraph newspaper.
