DUNDEE’S waterfront could be in line for a second boutique hotel with plans to transform the A-listed Custom House building on Dock Street.
It would be an upmarket four-star plus hotel, and discussions are under way with a major chain to operate the venture.
The 1840s building is owned by Unicorn Property Group, and founding director Tim Allan said it could open its doors as a hotel by 2014.
He said: “We’re looking at a boutique hotel with an emphasis on food and drink, with a top-quality bistro.
“We have an operator and a brand identified in this climate a deal isn’t done until it’s done, but we wouldn’t be taking it to the council without a plan up our sleeve.
“The wider waterfront regeneration and the arrival of the V&A in 2015 is focusing everyone’s interest.
“Clearly hotel operators are looking at Dundee as having a gap in the market that needs to be filled.
“With the Ryder Cup and the Commonwealth Games coming up, 2014 is going to be a big year for Scotland, so we want to have it up and running as early as possible.”
The hotel group linked to the development is understood to be new to Dundee.
Unicorn first proposed turning the Custom House building into a hotel in 2010, but the scheme was scrapped.
Plans have now been registered for the creation of a 38-bedroom boutique hotel with lounge, restaurant, private dining, bar, reception, function suite, private bar and lounge.
Historic Scotland are broadly happy with the idea.
The £15 million Malmaison Hotel is emerging from the shell of the former Tay Hotel at the corner of Whitehall Crescent and is due to open next summer.