Local publican Sandy Craig, who co-owns the Herges on the Loch restaurant and bar, already has approval to build a motel-style accommodation unit on a nearby site.
But with the railway on its way to the village and upgrade work ongoing at Abbotsford, the demand for rooms is likely to soar.
Mr Craig told the Border Telegraph: "Our plan was always to progress the accommodation building two and a half years after Herges on the Loch. We were looking at ten rooms on a single floor, but we are considering creating more rooms and having a larger building. The short stay accommodation will be a great boost for Tweedbank."
Herges on the Loch, which won an Excellence award from Trip Advisor just last week, has been a success story since opening over two years ago. And its picturesque setting at Gunknowe Loch and fine fare attracts diners from all over the central Borders.
But Mr Craig believes a large number of potential visitors are still being lost. He added: "The hotel would allow us to put a brown tourist sign up which would point people towards Gunknowe Loch and Tweedbank. At the moment many people are just bypassing the village because they don't know it's there."
A fresh planning application for the short-stay accommodation block on the one-hectare site at Tweedbank Drive has been submitted with Scottish Borders Council.