After the Government gave the green light to Butlins' new 125-year lease of its site in the town, the company said it was pushing forward with a scheme to build a new 200-room hotel and spa.
The hotel - to be built by the team behind Butlins's award-winning Shoreline Hotel - will have an "ultra modern" exterior and a wide range of rooms to suit different budgets.
Work is set to begin soon and the new hotel is due to open in time for next year's summer holidays.
Once open, it will provide up to 200 jobs in the Bognor area.
Project director Mike Crowther said: "The new hotel not only enables us to demolish older accommodation, but it provides us with more opportunity to support the fantastic regeneration program for Bognor Regis as a whole."