Plans for a new multimillion-pound hotel at a holiday resort are due to be unveiled within a month.

Butlins wants to spend about £20 million building a 200-room hotel at its resort in Bognor.

If given planning approval by Arun District Council it is due to be completed in mid-2012 and will lead to 100 new jobs.

Butlins is capitalising on the rise of “staycations” as more Brits choose to holiday at home.

The resort opened The Ocean Hotel last year and all of its 200 rooms have been sold out in the past eight weeks, with a total of 796 guests staying each night.

Jeremy Pardey, Butlins' resort director in Bognor, described the hotel as “probably the most successful individual investment” the company has ever made.

He added: “It has met all our expectations and then some.

“It has brought people to Butlins who would not have considered coming to Butlins before.

“They understand hotels better than they do chalets and are more comfortable staying in one.”