A rundown Holbeach site will become a gastropub and nine-bedroom hotel.
The Red Lion could reopen as a pub by the end of the year, with the bedrooms in a new stable block to follow on in about March next year.
The Spalding Road site belongs to SJP Properties, which completed a popular refurbishment in Market Place, Long Sutton last year and opened Palmers Ale House and Kitchen.
Sean Portass, of SJP Properties, expects total investment on The Red Lion to top £500,000, adding: “I personally think it’s a got a hell of a lot of character.
“There’s an inglenook fireplace and I want leather Chesterfields and to create a typical English pub. It’s my biggest project yet.”