THE GROUP behind plans to build a hotel on the site of Brevik House in Lerwick says it is in talks with a number of national chains about the proposed development.
Breiwick Bay Properties Ltd (BBPL) recently secured planning permission in principle for a 91-bedroom hotel after scaling back its initial proposal of over 100 beds as well as office space.
In 2015 the development was put on hold as the group had failed to raise enough money from investors, citing a drop in oil prices.
The news comes after budget hotel chain Travelodge signalled its intent last week to build more branches in Scotland, including Lerwick.
BBPL is part of property developers Ardent Group, which recently refurbished a derelict site in Peterhead to create a 63-bedroom hotel operated by Travelodge.
Director Martin Watt, who originally hails from Shetland, said the project is continuing to progress well.
Brevik House, the old local NHS headquarters, is currently being used by a group collecting aid items for refugees. Its collection point was recently broken into and badly vandalised.
“We’re delighted our application for a hotel has taken a key step forward,” Watt said.
“We believe our proposal would make a significant contribution to the local community. It would be inappropriate to comment further on the development at this stage ahead of further detailed submissions to the local authority.
“In the meantime, we’ve had preliminary discussions with a number of national hotel brands about this potential site.”