The Kilima Hotel, York, has re-opened following a £750,000 refurbishment and extension raising the hotel to three-star standard.

It means the hotel in Holgate Road is poised to take greater advantage of the massive developments which have been taking place at Holgate Park less than 300 yards away.

That includes the likes of wagon-makers Thrall Europa, and Card Protection Plan which now employs 1,000 people; plus a range of new offices being built on the estate, all of whom could generate new business for the Kilima.

Its facilities, overseen by manager Diane Dolan, now include an indoor heated swimming pool, Turkish steam room and fitness suite, plus a new bedroom wing, nearly doubling the total number of bedrooms from 14 to 26, including two four-poster suites. Bed and breakfast prices range from £58 per night to £115 for the four poster suite, with its own lounge and luxury bathroom. A former wine cellar has been converted into a bar and the restaurant extended.

A boardroom for meetings of up to 14 people has also been included in the redesign and should be complete by next month.

Gillian Cruddas, of York Tourism Bureau, opening the extension said: "Without improvements such as the ones here it would be a lot more difficult to promote York or to encourage people to come back to the city."

Owner Richard Stables, is also proprietor of The Crown, in Boroughbridge, which he bought in 1993 . The gym, pool and steam room are available free to hotel patrons, and are open to 150 people from the locality for a £100 joining fee and £500 annual membership. Mr Stables said: "The Kilima is in a great location, close to York city centre, but also well placed to serve the needs of businesses at the new Holgate Business Park nearby."