Council leaders are searching for a business to run a hotel which would form part of a wider revamp of a Northamptonshire town.
Daventry District Council said the hotel could be a major feature of the canalside WaterSpace development.
Council leader Chris Miller said it could boost employment and Daventry's business and leisure prospects.
Other ideas for the revamp include a marina, offices, health centre and homes.
A master plan for redevelopment of two areas of the town is being revised following the recent completion of the University Technical College, off Ashby Road.