The Courier & Advertiser (Perth and Perthshire Edition)

Waterfront hotel plan is at risk as Covid-19 sees demand drop

Business case for luxury accommodat­ion has not been signed off

- EMMA CRICHTON ecrichton@thecourier.co.uk

A £40 million hotel at Dundee’s waterfront is in jeopardy as coronaviru­s has seen demand for hospitalit­y plummet.

Dundee City Council finance bosses have revealed a business case for luxury accommodat­ion at Site Six has not been signed off and a decision has been made to review the plans, due to a drop in visitor numbers.

The existing office block will house Social Security Scotland and the hotel was to be operated by internatio­nal hotel group Mariott under its AC Brand.

A report for the council’s policy and resources committee on Monday, states: “In view of the global downturn in tourism due to Covid-19, additional hotel capacity is not anticipate­d to be required in the short-term, and a review of Site Six is being carried out to allow the remainder of the site to be developed.

“The letting of the office block at Site Six 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.”

Manny Baber, chairman of Dundee and Angus Visitor Accommodat­ion Associatio­n, and general manager of Sleeperz Hotels, Dundee, said it is important to support recovery of the tourism industry in the city.

He said: “The shelving of plans for another £40m waterfront hotel is disappoint­ing for Dundee’s hospitalit­y industry, but understand­able, in light of the downturn in travel and leisure tourism directly resulting from the coronaviru­s pandemic.

“The focus of the city’s accommodat­ion providers now is on continuing to provide Covid-19-secure hotel stays to leisure and business tourism markets and stimulatin­g growth and recovery in this vital business sector.”

 ?? Picture: Kris Miller. ?? Manny Baber, chairman of the Dundee and Angus Visitor Accommodat­ion Associatio­n.
Picture: Kris Miller. Manny Baber, chairman of the Dundee and Angus Visitor Accommodat­ion Associatio­n.

Newspapers in English

Newspapers from United Kingdom