AN OLD telephone exchange is to be transformed into a 60-bedroom city centre boutique hotel, restaurant, shops and offices at the end of the year.

Plans to develop the former telephone exchange building in St John Street, near the amphitheatre, have received detailed approval from the city council for what will be called The Exchange. Developers Opus Land have unveiled a plan for a 60 bedroom hotel, plus 2,290 sq m of office space, two retail units and a restaurant.

Work on the high profile development is expected to start by the end of the year.

The 1970s facade on Little John Street will be replaced by a contemporary remodelling of the elevation to blend in with the surrounding conservation area.

The three-floor boutique hotel will also include a restaurant and bar on the ground floor and a landscaped courtyard area. The proposed restaurant will be on the prominent corner position overlooking the amphitheatre, with further retail units located on Little John Street.

Neil Creeney, development surveyor from Opus Land said: 'We were keen to find a prominent location in Chester, which we have achieved with The Exchange and we are looking forward to developing the site to add value to the city's already thriving market.

'We have already received a significant number of strong enquiries, which is very encouraging.'

Cllr Gwyn Cooper (Lab City and St Ann's) thinks the development makes great use of the building: 'I think it is a welcome addition to the city, I worked there 35 years ago and I interested to see how they will make use of the inside.

'I have some concerns about the fact there is only one drop-off point for cars but that is standard in most city centre hotels.'