Work on a Chester city centre hotel is set to start after a ten-year delay.

Craigleith Property Group is behind the 109-bed venue, which is earmarked for a derelict site.

The original permission was granted in 2007 but following the demolition of the offices which occupied the area – known as the Ixos Apartments – the project stalled during the credit crunch.

Planning and development consultancy Lichfields has now secured an amended permission for the Forest Street development from Cheshire West and Chester Council.

Brian O'Connor, associate director at the Manchester office of Lichfields, said: "Following demolition of the office block in 2008 the previous developer suffered financial difficulties and was unable to continue with the development. After working closely and constructively with council officers, we are pleased to be able to now deliver an acceptable scheme for the site."

O'Connor noted that the new application makes "minor amendments" to the original.

"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," he said.

Talks are currently underway 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.

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