WORK will start next week on a new £10 million hotel in York after developers signed a deal with hotel operator Hampton By Hilton Hotel.

The six-storey 119-bed contemporary hotel, in Toft Green, will create up to 100 jobs in the construction sector and about 50 permanent jobs for the city once it is completed.

York Investors LLP, the joint venture partnership between York developer S Harrison and Buccleuch Property, which is also delivering the new City of York Council headquarters, said the hotel opportunity attracted interest from a number of national and international hotel operators before they signed the deal with Avantis Hotels.

The hotel site gained planning approval last year at the same time as the neighbouring historic West Offices development, soon to be headquarters for City of York Council. Miller Construction, which is also building the council headquarters, will start groundworks on the Toft Green site next week. The new hotel will be completed and operating by August 2012, before the council moves into its new home. S Harrison’s Chris Hale, who has been closely involved in the hotel development over the past two years, said the move would provide a major boost for the Micklegate ward area.

He said: “This is another major investment in the city’s tourism offer. York is now an all-year-round tourist destination. With over seven million visitors to the city every year, offering more choice is vital. The new Hampton By Hilton hotel, inside the city walls, is close to the station and within easy walking distance of the city’s attractions. It will attract leisure and business visitors alike.”

The main entrance will be from street level in Toft Green, and visitors will also be able to enter through the newly-created courtyard which fronts the entrance to the council offices. Hampton By Hilton, part of Hilton Worldwide, is a mid-priced hotel with more than 1,800 properties globally.