Hilton is understood not to be interested in becoming the operator of the eyecatching new hotel being promoted to transform Dundee railway station.
The grand archway-type structure unveiled at the weekend would be a stunning landmark on the waterfront that the scheme’s backers say would complement the V&A and other prestigious buildings destined for the area.
The 1.2-hectare site now occupied by Hilton and Gala Casino in Earl Grey Place is needed for the £1 billion waterfront project and Dundee City Council has started compulsory purchase order (CPO) proceedings to obtain the land.
This step, which the council’s Labour group tried to defer, follows protracted discussions with Hilton and Gala to try to find an alternative central site for them, but which failed to make progress.
Discussions with Hilton and Gala are continuing, but the council voted to proceed with the CPO to prevent the waterfront project being delayed.
The emergence of the station plans raised the possibility of Hilton moving to that site and avoiding the need to proceed to a CPO, an appoach that could prove costly.
However, inquiries by The Courier indicate that Hilton would not be interested in the station site as the hotel group is looking for a bigger development.
No comment was available from Hilton Worldwide.
A spokesman for the council would only say: ”The hotel at the station will be marketed in due course and discussions are continuing with Hilton on their situation.”
Meanwhile, the former Tay Hotel in Dundee city centre is being enveloped in scaffolding as the building undergoes a multi-million-pound refurbishment.
The luxury boutique hotel chain Malmaison has taken an initial 35-year lease on the building with an option to extend for another 35 years from MEC Services (International) Ltd.
The building had been vacant and fallen derelict in recent years, prior to MEC’s plans to carry out a comprehensive programme of refurbishment being approved last year.
Work has already begun to transform the interior of the property into a 91-bedroom hotel space and the exterior is also now receiving attention.
The new hotel which will be a short walk from the landmark £45 million V&A Museum at Craig Harbour is expected to open its doors next spring and will create 120 jobs.