Car park for scuppered £23 boutique hotel site?

A MULTI-MILLION pounds regeneration project earmarked for Londonderry city centre where it was hoped a new boutique hotel would be situated may now end up as a car park with the developer chosen for the scheme pulling the plug due to economic conditions.

Big Picture Developments - the firm chosen to radically transform the site of the Old City Hotel in Foyle Street has pulled out of the scheme blaming "market conditions."

It says the current economic climate is behind its decision to walk away from the project which would have seen a boutique hotel and a number of inner city apartments built on the Foyle Street site.

The Department of Social Development (DSD) - owners of the site - says it now proposes to landscape the site and consider the "possibility of including car parking to address some of the demand for additional spaces in the city centre."

SDLP Foyle election candidate Mark Durkan MLA has said the landmark site remains a "huge opportunity."

Mr Durkan said: "It is deeply regrettable that the previously preferred developer has withdrawn from this key site for whatever reason.

"It is still a huge opportunity site sitting beside the Guildhall and adjacent to the new peace bridge.

"It can be a landmark link between the Walled city centre and the Ebrington site.

"Pending new developer proposals I hope that some of the site will soon be available for much-needed parking which is one of the issues the city centre traders have been stressing."