A new hotel and a supermarket could be built on the site of the derelict former Kirklees College in Huddersfield town centre.
Leeds-based developers Trinity One LLP bought the 1960s college building and the former hospital behind it last month for an undisclosed sum.
The site in New North Road has been vacant for several years and has been a target for vandals and arsonists.
Plans to build a new Lidl store collapsed last year but now Trinity One is set to revive the supermarket idea – and add a hotel. Hundreds of jobs could be created.
The latest scheme is at an early stage and no planning application has been submitted.
Mike Dove, of Leeds-based property consultants Dove Haigh Phillips, who brokered the deal between Trinity One and the college, said: “This prestigious site occupies a commanding gateway position overlooking the town centre.
“It provides a tremendous opportunity for a first-class mixed-use redevelopment, which will revitalise the town’s economy.
“The 342,000 sq ft site, which includes the majestic old Grade 2-listed hospital building, has immense potential. The development will feature an imaginative mix of retail, leisure, residential and office space, all of the highest quality and scale.
“Talks are already well advanced with a supermarket giant to provide a supermarket on site, while a major UK hotel chain is planning a new-build hotel there as well.
“These key deals will kick-start a development project which will transform an ailing area of land into an economic powerhouse.”
Tas Javed, managing partner of Trinity One, said: “We have been working with Kirklees College since 2016 to deliver this significant deal which will unlock the unique
potential of this strategic site.
“We intend to create a premier mixed-use development, of which Huddersfield can be incredibly proud. The development will set a new standard of quality residential, leisure, retail and employment space for the town, based on sound economics and an understanding of the demographics of the area.
“We believe it is fitting that we are bringing these plans forward in the year in which Huddersfield Town are playing in the Premiership for the first time ever. These are very exciting times for the town.”
It is hoped a planning application for the site will be submitted in the next three months.
Huddersfield has a Travelodge and a Premier Inn close to the town centre and there are plans for a New Radisson Park Inn as part of the HD One complex at the John Smith’s Stadium.