Plans to build £40m waterfront hotel in Dundee shelved

Council papers reveal that extra hotel capacity is "not anticipated" in the short-term.

Plans to build £40m waterfront hotel in Dundee shelved

Plans to build a £40million hotel at Dundee’s Waterfront have been shelved.

Council papers reveal that extra hotel capacity is “not anticipated” in the short-term due to the down-turn in tourism caused by the coronavirus pandemic.

The luxury accommodation was set to be operated by international hotel group Mariott under its AC Brand.

The council confirmed today that its £20million business case for the project has not been signed off.

Instead a review of the proposed development site is being carried out, exploring other “job creating” uses.

In a report to be considered by councillors next week, Gregory Colgan, Executive Director of Corporate Services, states:

“In view of the global down-turn in tourism due to Covid 19, additional hotel capacity is not anticipated to be required in the short-term, and a review of site 6 is being carried out to allow the remainder of the site to be developed.

“The letting of the office block at site 6 allows the potential ‘flip’ of Growth Accelerator funding to other job creating uses within the central waterfront area, and this will be explored in more detail in a future report to members.

“The budget has been re-phased to reflect latest timescales.”

A spokesperson for Marriott International said:   “As a company, we are always looking out for opportunities for growth and investment and we would love to expand our hotel brands in the Dundee market.

“If we do have any news, we will be sure to let you know.”

Last week, it was confirmed an office block next to the proposed hotel site would become the headquarters of Social Security Scotland, bringing hundreds of jobs.