A NEW 150-bedroom hotel in the heart of York is set to be completed a year late after the main site contractors went into administration.

Work is continuing on the Malmaison hotel, which has faced major disruption caused by Leeds-based Broadley Group going into administration - followed by the Covid-19 crisis.

York-based developer, North Star, has now taken charge to see the venture through to completion, working with the project funder Lothbury.

Yorkshire House, the former Aviva building in Rougier Street, is being converted into a high-end Malmaison hotel with a sky bar boasting views of York Minster. Work started on the building in 2018, with a spokesman for the developers estimating it would be complete by the end of 2019.

A spokesman for North Star said: “Following the unfortunate demise of the main contractor, we have stepped up and taken responsibility to manage the project to completion ourselves, with the support of the funder and ultimate owner, Lothbury.

“All local sub-contractors have been retained on the site and work is continuing, with strict social distancing policies in place following Government guidance.

“There are around 20 people working on site currently and this will increase as the project progresses. As a proud local company, we are committed to delivering projects in York to improve the city and boost the local economy. We expect that the conversion will be finished by the end of year.”

Under the plans, the site will have a restaurant, bar and gym with a single-storey extension between the block and the Grand Hotel’s Rise Restaurant, Terrace and Bar.

Yorkshire House was built in 1962 and refurbished in 2000.

North Star, in partnership with York Archaeological Trust and hotel operators Native, are also behind the ‘Roman Quarter’ bid for Rougier Street.

As previously reported, the proposals include demolishing three buildings in Rougier Street and replacing them with a Roman attraction, a hotel, apartments, offices and new cafes, shops and restaurants.

The developments will further boost the ‘renaissance’ of the area which already includes the council’s West Offices HQ, The Grand Hotel and Hudson Quarter.