A 240-bed hotel could be constructed at Noble's Park in time for this year's TT.
Plans have been lodged for a temporary complex, and a marquee, to be sited at the bottom end of the park, on land next to the cafe and changing rooms.
The portable hotel units are used at a number of motorsport events, including the British Grand Prix at Silverstone.
Douglas Borough Council, which owns the park, last year agreed for the temporary hotel to be located there.
Chairman of Leisure Services Councillor Stephen Pitts sees it as a great way to increase the number of beds available during festival fortnight:
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