The company is building an 80-bedroom budget hotel and 200- seater restaurant off the Oakhurst roundabout on the A66.
Nick Johnston, of Premier Inn, said: “We are excited to invest £9 million in Cockermouth.
“The work is progressing well.
“We anticipate the development being finished and the hotel opening in early 2017.”
The hotel, which the chain’s owner, Whitbread, has said will resemble a Cumbrian farmhouse with an adjoining barn, will create 50 jobs.
The development is being built on the site of the former Shepherds Hotel, which was demolished earlier this year.
The Shepherds Hotel used to be tourist attraction the Sheep and Wool Centre.
Scaffolding has been erected this week as work continues on the new Premier Inn.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here