The Crooked Glen, a Brewers Fayre outlet at Fife Leisure Park, closed last summer when it was announced it would be solely for patrons of the Premier Inn next door.
Both are managed by Whitbread and late last year proposals were submitted to alter the existing hotel and part change the use of the restaurant.
The Premier Inn currently has 78 rooms and the redevelopment – the company said there was “considerable demand” for accommodation – will take this up to 92.
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The site, which has 116 car parking spaces, is between the McDonald’s restaurant and the Hollywood Bowl.
The firm explained its reasons in a planning statement: “Premier Inn has identified a considerable demand for additional budget hotel accommodation in this location.
“It is also acting to reconfigure its offerings to ensure it best fits the needs of customers.
“This proposal for additional bedrooms and an adjusted guest amenities proposition will meet Premier Inn’s operational requirements and address the identified demand for its offer.”