The five-acre College Hall site in Knighton, which has been out of use since 2005, will be made into a 117 en suite bedroom facility with break out rooms, dining facilities and 150-seat lecture theatre.
Once complete it will mean the University will be able to stage residential events all year round as apposed to just during the holidays.
Leicester Conferences sales and marketing manager Trevor Miller said: "The redeveloped College Hall site will be a significant addition to Leicester Conferences portfolio of venues which currently includes residential conference facilities during student vacation periods and year-round day conference availability.
The College Hall project will be constructed to a four star standard allowing Leicester Conferences to appeal to a wider audience and strengthen Leicester’s position as a very central and accessible location and a destination of choice for conferences and events."
Work is due to commence early 2012 with completion set for mid 2013.
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