Dundee’s economic revival has received a major boost with confirmation that a prestigious Malmaison hotel will be moving into the waterfront.
A contract has been signed for leasing the Tay Hotel building, which will undergo a major renovation and refurbishment to convert it into an upmarket hotel.
Work will start in the spring to transform the landmark 91-bedroom building into Malmaison’s 13th hotel, with completion expected in May 2013.
Malmaison is taking a 35-year lease with an option to extend for a further 35 years, and the project will create 120 jobs.
The arrival of Malmaison is seen as a massive vote of confidence in the Dundee waterfront, the ambitious £1 billion redevelopment crowned by the £45 million V&A museum to be built overlooking the River Tay.
The once proud Tay Hotel, one of the most prominent buildings in central Dundee, fell into disrepair after being closed for many years, its decaying presence representing an unattractive welcome to the city centre. Its potential to play an important role in the area’s renaissance has long been recognised, however, and there was hope that the arrival of the V&A could be the catalyst for its rebirth.
That hope was encouraged by the granting of planning permission by the city council last year for the renovation of the B-listed building. The signing of the lease brings this to fulfilment.
The agreement has been concluded by Gary Davis, who joined the Malmaison and Hotel du Vin group as chief executive last week. His aim is to take the award-winning boutique hotels business to the next stage in its development.
”This is a fantastic project,” Mr Davis said. ”The regeneration on the Dundee waterfront is already under way and we are delighted to have secured the lease on this property that will enable us to create a prestigious hotel on the site.”
Councillor Ken Guild, leader of Dundee City Council and chairman of the Dundee Waterfront Board, said: ”We are delighted to welcome Malmaison to Dundee as a key part of the new waterfront, particularly as the new hotel will result in the restoration one of our finest historic buildings as a landmark destination right at the heart of the regeneration of the city.
”The £1 billion transformation of Dundee’s waterfront spans 240 hectares of land stretching 8km along the River Tay, it is the second largest regeneration project in Scotland and is within the top 20 such projects throughout the UK.”
First Minister Alex Salmond said: ”MWB’s decision to open a new Malmaison in Dundee reflects the significant opportunities for development and growth in the city.
”The city’s successful games sector and the creation of the V&A at Dundee strengthen its reputation as a centre for the creative industries and its ability to attract new investment and visitors.
”The announcement demonstrates confidence in the local economy and will bring new jobs to the city. Malmaison has chosen an excellent location in the Dundee central waterfront development.”