The 4m development, made possible through fundraising, is managed by Acorns, a West Midlands-based hospice trust.
It will serve children in Worcestershire, Gloucestershire and Herefordshire.
The hospice offers respite, emergency and terminal care for children and has a community team providing 24-hour support for families at home.
Acorns' chief executive, John Overton, said it was a model for others to aspire to.
The Government has consistently rejected calls to boost funding for children's hospi-ces to make it equal to that of adult hospices.
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