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A new riverside restaurant and nine holiday lets have been given the green light.
Dover District Council granted planning permission and believes this will help the visitor economy.
The redevelopment of the site on the banks of the River Stour, and close to Sandwich’s historic Toll Bridge and Barbican, is hoped to enhance the northern entrance to the town.
Developers, Ramac Holdings and architects, OSG Architecture, worked closely with council planners to design a contemporary building of high quality that will be sympathetic to, and enhance, the historic setting.
Sandwich is renowned for its medieval street pattern and high concentration of listed buildings.
The materials used for the building will also complement the surrounding townscape, including handmade clay roof tiles and black window frames.
Cllr Trevor Bartlett, DDC leader said: “These exciting plans for Sandwich are another example of the strong investor appetite in the district, particularly from leisure and hotel investors on the back of The Open.
“It’s an excellent example of how developers and councils can work together to deliver new, contemporary building design within a historic setting.”
Sandwich had a multi-million pound boost to its economy boost last summer when Travelodge opened its first hotel there, at Discovery Park, creating 18 new jobs.
It was seen as further development of the business land there, which had previously been dominated by the pharmaceutical giant Pfizer.
The hotel, in Spitfire Way, also took its first customers in time for the 149th Open golf tournament, at the Royal St George's course, in July.
That returned to Sandwich after 10 years and brought an estimated 32,000 people to the town.
It is the biggest sporting event regularly hosted in Kent.
Town mayor Paul Graeme estimated that At least 50% of people who attended The Open in 2011 returned to Sandwich within two years as the event was a major showcase for the town.