Londonderry city centre is set to get a £23m revamp, the government has announced.
The work is to take place beside Derry's Guildhall on the site of the old City Hotel, which was destroyed 33 years ago in a bomb blast.
Currently used as a car park, Social Development Minister David Hanson said the hotel and apartment scheme on the site would bring 200 jobs to the area.
Big Picture Developments Ltd has been picked as preferred developer.
"The development of this site will complete a comprehensive development scheme for the Foyle Street area initiated almost 20 years ago by government, with the aim of encouraging private sector investment," he said.
"That initiative has succeeded in delivering key projects such as the Foyleside Shopping Centre and Orchard House and is now completed."
He said it was estimated that the Foyle Street development will provide 200 jobs in the construction industry and when completed, over 200 jobs in the retail and tourism sectors.
The Big Picture Developments Ltd scheme, involves a boutique hotel; apartments; restaurant; retail units and public inner courtyard.
'Respectful'
It is expected to open by 2009, subject to obtaining planning permission.
Big Picture Director, Barry Gilligan, said they believed they could deliver a "very exciting and innovative new development".
"We're looking forward in the coming months to sitting down with community, business and political representatives to present and explain our plans, while at the same time moving ahead with the necessary agreements and permissions required to get started on site as soon as possible," he said.
Mayor of Derry Helen Quigley said the designs for the scheme she had seen were "respectful and complementary" to the historic setting.
"I am also pleased that the development will enhance the city's growing evening economy by generating more opportunities for city centre living and eating out," she said.
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