A former Georgian town house in Swansea is set to become a bunkhouse-type hotel.
Council planning officers have given the go-ahead for the owners of the three-storey building in the city's maritime quarter to refurbish and upgrade it.
The Prospect Place building is set in a row of late Georgian townhouses.
A tourism assessment submitted as part of the application said the bunkhouse would suit holidaying cyclists, walkers, visiting football and rugby fans, and families on a low budget.
It claimed there was little aimed at this market in Swansea at present.
The planning statement added: "A hotel/bunkhouse can take advantage of this clear lack of competition within this price segment offering places to stay for £20 to £25 per night, which will encourage a large amount of young tourism within Swansea.
"The hotel/bunkhouse will be five minutes away from the new Swansea arena being built by the leisure centre which will attract thousands of individuals from a range of ages."
New windows are proposed at the rear of the building, which faces onto Bath Lane and has an enclosed beer garden.
The town house was among the earliest to be listed in Swansea, in 1952, but planning officers said in their report that much has changed.
"The recent site visit reveals that very little historic fabric remains and this listed building has been significantly altered," said the report.
But it concluded that the proposed refurbishment would enhance the building and surrounding conservation area and that its hotel use would not detrimentally impact on nearby residents.
Public transport links, added the report, were good and there was sufficient public parking nearby.
A separate listed building consent application has been submitted for the bunkhouse change of use proposal and a decision is pending.
