Hotel chain Premier Inn has confirmed it is looking to open a site in Newtown.
It comes as part of a plan to open seven new hotels in Wales.
The company said that while coronavirus had affected tourist and business accommodation, it planned to invest for the future.
The move comes nearly 30 years after the former Development Board for Rural Wales attempted to lure a major hotel chain into the town.
The DBRW earmarked the former laundry site, now the location for McDonalds as the site. It even undertook infrastructure works in readiness, but no chain was willing to invest.
It is not known if Premier Inn will see an existing property or build a new hotel.