Excavation works have begun to prepare the ground for building a second Tŷ Hotel as part of the Celtic Collection in South Wales.

When it opens in the autumn of 2020, Tŷ Hotel Newport will be a 146-bedroom, mid-range hotel with a separate building housing a drive-thru Costa Coffee shop.

The new hotel is being built next to the Coldra Court Hotel by Celtic Manor in Langstone, just a few minutes from the Celtic Manor Resort and enjoying the same direct access to Junction 24 of the M4 motorway.

The start of construction works on the new hotel follows last month’s acquisition by the Celtic Collection of a former Hampton by Hilton and its rebranding as Tŷ Hotel Magor.

Tŷ (pronounced “tee”) is the Welsh word for “house” and reflects a new style of essential, mid-range hotel offering from the Celtic Collection, recognising everyday needs with accommodation designed for easy, short stays.

Tŷ Hotel Newport will also address the increased demand for bedroom stock created by the opening next month of the International Convention Centre Wales (ICC Wales) at Celtic Manor.

Russell Phillips, vice-president, facilities and development, of the Celtic Collection, said: “We are delighted to start construction of a new Tŷ Hotel and add another property to our portfolio.

“Tŷ Hotel Newport will bring more employment and visitors to the city of Newport and help the area address a shortfall in the accommodation needs of conferences and events being held at ICC Wales.

"An essential, mid-range hotel also helps us offer a different kind of accommodation for people attending and working on these events as well as those visiting the city and region for other purposes.”

South Wales based Carter Lauren Construction Ltd is the principal contractor on the build project.

Neil Carter, managing director of Carter Lauren Construction Ltd, said: “Being a South Wales contractor, it is a privilege to have been successfully selected to construct the new Tŷ Hotel as part of the Celtic Collection in South Wales. Through close collaboration with the client and the design team, we look forward to successfully delivering this project.”

City of Newport Mayor Cllr William Routley and Cllr Ray Mogford, who represents Langstone, were guests of honour at a turf-cutting ceremony to break ground on construction of the new hotel.

Cllr Routley said: “It gives me great pleasure to be part of the launch of another exciting business for Newport.

“It is very important that we expand our hotels offering in the city to cope with the increasing demand for accommodation brought about by the development of ICC Wales. It is vital we keep pace with this demand and ensure the maximum benefit for our communities from this new influx of visitors.”

The Celtic Collection already includes the main Resort Hotel with adjoining Manor House, Coldra Court by Celtic Manor, the Newbridge on Usk country inn restaurant with rooms, and the newly acquired Tŷ Hotel at Magor.