Developers still committed to Kinfauns hotel.

PLANS: US company remain in discussions about development on banks of River Tay

Developers insist they are committed to building a £60 million luxury hotel on the edge of Perth, despite the project falling several years behind schedule.

After more than a decade in development, planning permission was awarded for a five-star, 300-bedroom establishment at Kinfauns, on the banks of the River Tay, in November 2014.

The following summer, project leader Perthshire-based property developer Joseph Khazaka said work was about to start on the 21-acre plot and the hotel would open in the middle of 2017.

However, after some foundation work, the project has stalled. Mr Khazaka declined to say what was causing delays, but added: “I can say this hotel is still going ahead.

“I don’t want to say any more than that at this stage.”

Mr Khazaka confirmed an underground gas pipeline that caused concern in early stages of the planning process was not causing the hold-up.

American company Wyndham, one of the world’s biggest hotel chains, said it was still keen to operate the venue when it is built. A spokeswoman said: “We remain in discussions with ownership to brand the hotel when development resumes.”

Mr Khazaka’s daughter Lita is lead architect on the project. Her designs show a low-rise structure that aims to the mimic contours of the hills. It has a grass roof to help the building blend in to the surrounding environment. The project is expected to create more than 300 jobs, plus 185 indirect positions.

Perth and Kinross Council recently launched its own drive to attract a hotel chain to the city centre that would offer 100 to 125 bedrooms.

Council chiefs said they made progress following a networking event in London, but are still awaiting a concrete proposal from a hotel company.

An artist’s impression of how the luxury hotel development at Kinfauns would look.