Hotel, golf and spa resort Celtic Manor is planning to invest a total of £160m in developing its offer over the next decade.
The 2010 Ryder Cup venue, which already has 409 rooms, will add 40 apartments and 50 luxury chalets or lodges, as well as adding to last year’s £500,000 investment in team-building and leisure facilities.
Local billionaire owner Sir Terry Matthews told Walesonline: "Since [The Ryder Cup] we have spent £1.5m on the resort.
"One of the problems is that the hotel is too successful… so we are having to decant guests to other hotels in the region.
"That is a problem, as if you have a conference and cannot put people up, it is a bit negative as you don’t want to turn people off.
"So the investment in these five-star luxury chalets is an extension of the hotel and will provide extra capacity."
The resort will add more leisure attractions in the coming months, including laser combat, paintballing, archery and, most notably, Skywire Wales, Europe's longest zipwire, which is scheduled to open in August. This comes in addition to last year’s Forest Jump treetop high ropes course and adventure golf course.
Paul Williams, PR manager at Celtic Manor said: "The luxury lodges will be aimed primarily at the family leisure market but when there is availability and the hotel is full with conference business, they will give the resort additional room capacity on site."
Sir Terry said the hotel was trading "extremely profitably" and added: "If you look at the hospitality sector in Europe, it is down more than 10%, but we are up 20%."