As well as a new hotel, the museum's existing conference and exhibition facilities will be restructured and improved, including the expansion of the courtyard area.
The National Motorcycle Museum said in its planning proposal that in order to make effective use of the conference venue brand, new hotel accommodation has to be available. It added that the investment is wholly reliant on the revenue generated from the conference business itself.
The proposal also states that the new hotel will be utilised as a conference and meetings venue alongside the museum.
The venue already operates two off-site hotels, however it is believed that neither are able to provide the level of conference accommodation required.
Last year The National Motorcycle Museum recorded a 7.5% rise in turnover from its events division and a 10% increase in turnover is predicted in the first quarter this year.