A planning application to expand the Low Wood Hotel between Windermere and Ambleside has been agreed by the Lake District National Park Authority.
The plans included 46 new bedrooms, new restaurant facilities, a multi sports pitch, and a new spa.
Improved infrastructure and renewable energy features are also planned.
Simon Berry, Managing Director of English Lakes Hotels Resorts & Venues, said: “This is marvellous news. It’s the largest redevelopment of Low Wood Bay hotel since 1859, creating the Lake District’s first luxury destination resort.
“We’re thrilled that the Lake District National Park Authority recognises what we are trying to achieve. In setting its vision for the park to be ‘world class’, it is now clearly supporting business to deliver on that vision and is showing the faith to back us on this project.
“Our desire to create excellence and make significant improvements at one of our flagship hotel sites is a real fillip for both business and tourism in the area, especially at a time when the Lake District is seeking to attain World Heritage status.”
The work is scheduled to start in the Spring of 2016 and is estimated to take 18 months to complete.