Plans for the new hotel, which will have up to 470 bedrooms, and the multi-storey car park have been submitted to An Bord Pleanála in recent weeks.

The DAA says about 550 jobs will be created during the construction phase, while the new hotel is expected to employ 350 staff.

The project will be developed in conjunction with Northern Ireland property developer McAleer & Rushe. The DAA will own the car park while the hotel, which will operate under the Crowne Plaza brand, will be owned by Irish hotel operator Tifco.

The DAA hopes the new hotel and car park will open in 2010, with the first 750 spaces of the car park open by April of that year to coincide with the opening of Terminal 2. The hotel will be beside the proposed Metro station at Dublin Airport.

Tifco is an Irish company which owns and manages Clontarf Castle Hotel, and the Crowne Plaza and Express By Holiday Inn brands in Ireland. It owns four hotels in Ireland and one in Germany and has two further properties under construction.