A famous name will rise from the ashes if a York-based construction company wins planning permission to build a new hotel in the city.

The old Queen's Hotel.

The £5m 80-bedroomed "tourist budget" Queen's Hotel will be built by developers PD Smith Holdings Ltd in Skeldergate, close to where the once-famous original stood.

"To resurrect the Queen's Hotel in the city is as if a phoenix has risen out of the ashes on a site left derelict for years," said Ian McAndrew, director of international property advisors DTZ Debenham Thorpe, which is representing PD Smith.

It is the company's first venture into building hotels. PD Smith is better known for its two nursing homes at Strensall and Wigginton.

Mr McAndrew said: "We originally bought the site for £1.3 million from the receivers of the Scottish Heritable Trust plc, and subsequently sold on the Grade II-listed adjacent building."

The former Scottish Heritable building (Woodsmill) next to the site was purchased by Teesside-based Mandale, responsible for Hartlepool Marina. It is to be converted into 39 residential units to let.

The site of the original Queen's Hotel in Micklegate is now occupied by Langley solicitors, within a £7m block of prestige offices and shops - Queen's House.

"The Queen's Hotel was one of the last listed buildings to be demolished in York," said Mr McAndrew, who is based at DTZ's York office.

"The National Curriculum Council was committed to the property, but the developer experienced financial problems, and the site stood empty for ages. The NCC then shifted its attention to Emperor's Wharf."

He added: "The new Queen's Hotel development has been in sympathetic consultation with English Heritage."

A public outcry ensued in 1974 when it was revealed the Queen's Hotel, considered to be one of the finest examples of 18th century craftsmanship in the city, was potentially dangerous and would have to be demolished.

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