A LUXURY £700,000 wedding and function suite will create at least eight new jobs.
Work has begun on the construction of a new self-contained barn-style building at the three-star Brackenborough Hotel, which lies off the A16.
As well as providing seating for up to 240 people, the new venue will have a reception area, bar, toilet facilities and an acre of landscaped gardens.
Ashley Lidgard, owner of the Oakridge hotels chain, which also includes The Ashbourne, at North Killingholme, said: "It will be a modern, opulent function space with rich colours and lush furnishings.
"We've built up an excellent reputation over the years but because our existing function room only seats between 80 and 90 people, we've had to turn business away.
"The Ashbourne can accommodate more people and the response there has been phenomenal so we wanted to replicate that space here.
"There will be nothing like this in the surrounding area and the reaction from people who have seen the plans so far has been incredible.
"We're looking forward to the first weddings being held in the new suite in the spring."
The project has been made possible by a £150,000 grant from Lindsey Action Zone, which has injected £1.7-million of European funding into rural areas of northern Lincolnshire in the last four years.
July Bell, local action group manager for Lindsey Action Zone, said: "We hope the new function suite will benefit the hotel, other local businesses and the wider community by providing a facility which doesn't exist as present.
"It will also create new jobs, which is extremely important in the current economic climate."
Councillor Jill Makinson-Sanders, who is Mayor of Louth, said: "This funding is fantastic as it makes the difference between projects going ahead or being stalled.
"This new function space will be a huge asset for the area and will create jobs and further investment."
The venue, which is being constructed by Immingham-based Cube 3 construction – who also built The Ashbourne two years ago – is due to be completed by the end of February.
Plans are already in place to use the new venue for a jazz festival, car show and charity fundraisers.
Ashley added: "We're hoping that as the function space becomes more popular, there will be more demand for bedrooms and further development at the hotel will follow.
"We also have planning permission for a gym, so that will be built in the future too. The new building will create eight jobs to start with but we're hoping to bring in even more people as it gets booked up."
Bookings are already being taken for weddings and functions to take place in the new venue from March 2013. To find out more, call 01507 609169.