An independently-owned spa hotel could be built in Carmarthen after the Welsh Assembly Government agreed to sell a 7.5-acre (3-hectare) site to Gryphon Leisure.

The luxury 100-bedroom property, which remains subject to planning permission, would be developed in two phases; the first of which comprising 60 rooms opening ahead of the 2013 season.

A further 40 rooms would be added under the second stage of the scheme, which would be completed a year later. A bespoke health spa and function suite are also mooted.

Gryphon Leisure's directors Angela Saunders and brother Barry also own and run Stradey Park Hotel in Llanelli.

Angela Saunders said: "We believe our plans will create significant economic benefits to the area. Our policy is to recruit locally and employ as many full time staff as possible and we will be creating up to 120 new jobs at the hotel."