Work will begin 'within weeks' to create a 109-bed hotel on a derelict site in Chester city centre.

Craigleith Property Group is behind the accommodation plan in Forest Street after Cheshire West and Chester Council agreed an amendment to the original planning consent.

Permission was granted for a seven-storey 65-bed hotel back in 2007 leading to the demolition of an office building but the hotel scheme stalled due to the credit crunch.

Agent Brian O’Connor, of Lichfields, on behalf of applicants Craigleith Property Group, said: “Following demolition of the office block in 2008 the previous developer suffered financial difficulties and was unable to continue with the development.

Amended plans have been agreed to create a hotel in Forest Street in Chester city centre.

“After working closely and constructively with council officers we are pleased to be able to now deliver an acceptable scheme for the site.

“This new application makes minor amendments to the hotel scheme approved in the original application.

“The new hotel will provide a vital service, regenerate this long-term derelict site, which is long overdue, and help to generate further use of the facilities and services currently provided in the city.”

Talks are currently under way with potential mid-range hotel operators, with an announcement expected early next month. Work is expected to start shortly after that.

The seven-storey scheme has been designed by Axiom Architects.

There are plans to turn Dee House in Chester into an upmarket hotel but progress appears to be very slow.
There are plans to turn Dee House in Chester into an upmarket hotel but progress appears to be very slow.

Recent research by Colliers revealed Chester as the UK’s number one hotspot for future hotel investment and development. Its UK Hotels Market Index uses a series of key performance indicators to score each of 34 locations across the UK from one to five.

Hotels are currently planned or under construction next to Waitrose in Boughton, in Nicholas Street, Pepper Street, Dee House by the amphitheatre, Foregate Street, Grosvenor Park Road and The Old Palace overlooking the river.

Last year Muse Developments, who built the One City Place office block near Chester Railway Station, revealed negotiations were ongoing to bring a 120-bed hotel to the other side of the canal from Waitrose as part of its wider business quarter masterplan.