A new youth hostel could be created in Colchester to help boost tourism by encouraging visitors on a low budget, coach parties, walkers and cyclists.
Councillors are expected to support the plan at a meeting next week.
East Bay House, East Hill, was closed by the Youth Hostel Association in 1995 as it was thought to be unviable and the building was unsafe. It had been used as hostel since 1948.
Last year the association's chief executive told the council it wanted to see a new hostel in the town with between 50 and 60 beds.
The town is in the top 20 places in the country being targeted for a new hostel.
Borough council officers say Colchester is a good location as it is near Harwich International Port and is the first major centre on the national cycle route from Harwich. The council wants to attract people taking walking and cycling short breaks.
Currently the nearest youth hostel is in Castle Hedingham.
Members of the arts and leisure committee will be asked to agree to the idea in principle on Tuesday.
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