Demolition work to destroy the former Gala Bingo premises on Albert Street is underway in favour of a new 63-bed Travelodge hotel.
Planning permission was granted by Mansfield District Council in July to destroy the premises and create a hotel and retail unit.
The plans will bring more than 50 jobs to the town, including in the hotel, which will create 21 jobs, and the retail and restaurant creating 31 full time equivalent jobs.
District councillor Brian Lohan said he welcomed the hotel as an investment in the town.
He said: “It will bring employment and jobs and people from outside the area looking at bringing business to the area will be able to come and stay.
"It will encourage investment in the town centre. I was disappointed that Gala Bingo has gone because a lot of people used it.”
The proposed hotel building will be positioned on the southern part of the site, and would join onto the adjacent property 43 Albert Street and extend round the corner facing onto St Peters Way.
It will be four storeys high with bedrooms located on the upper three floors.
The hotel entrance and ancillary facilities will be located on the ground floor, where there would also be retail and restaurant use.
This use would be operated independently from the hotel.
Plans lodged with the council say the hotel would be a contemporary design with a flat roof, and faced largely in brick, with cladding to part of the upper floors on the south east and northwest facing elevations.