The application for the former crazy golf site received the enthusiastic backing of East Lindsey’s planning committee.
Councillors were told that the plans would contribute £2.6million to the area’s economy every year.
There had been written objections from hoteliers who would lose their sea views, but none spoke at the planning meeting.
Daren Burney of The Burned Group told the committee: “Despite the current economic climate, we are fully committed to these plans, which will be ready by summer 2024.
“It will bring significant regeneration to the Skegness foreshore, and will attract more investment to the area.
“This exciting development will deliver a major aspiration for one of the UK’s top seaside resorts.”
Councillor Neil Jones backed the plans, saying: “There is no doubt that it would offer significant economic benefits to Skegness”.
Councillor Sid Dennis said the objections didn’t seem to have merit in planning terms.
“It would be an excellent thing for Skegness – top notch,” he added.
There had been some concern about the height of the five-storey Travelodge at the north end of the site.
It would be around five metres taller than the existing buildings on South Parade, while the Starbucks drive-thru was a single storey.
The hotel would also have a restaurant and bar on the top floor, which would take advantage of sea views and be open to the public.
Nearly all members of the committee backed the plans, with one against and one abstaining.
The decision will see the former crazy golf site brought back into use after almost five years of standing empty.
It is estimated the development will create 45 full and part-time jobs.
in 2021, the UK's largest independent chain opened a new hotel just a few miles away in Boston - one of 17 built across the country. The new 56-bed hotel on Scott Drive in the new Quadrant development created 15 jobs and rooms were on offer from just £29 to attract visitors to the historic market town.
The planning meeting was one of the first to be held at East Lindsey’s new council HQ in Horncastle, and saw a few technical glitches as participants got to grips with the new system.