Work is set to resume on a hotel in the centre of Inverness first planned more than six years ago.
Patio Hotels are behind the project to convert Bridge House in Church Street into a four-star venue.
CEO Tony Story says he hopes to get work underway again in October.
New roof and extra floor for hotel
It is one of a number of hotel plans for the city centre that have been delayed by the pandemic and rising construction costs.
Work on the former council service point on Church Street will include replacing the roof and putting in an extra floor.
Mr Story believes its 72 rooms are sustainable in a difficult market.
Plans were first submitted in 2018 for the “stylish, cutting-edge urban hotel”.
At one stage it was one of four hotel developments planned for the centre of Inverness to meet greater tourist demand.
Since then only the 191-room AC Hotel by Marriott in Glebe Street has been developed, opening in 2022.
Costs rise by £3 million
Initial work to remove asbestos from the Church Street building was completed in 2020.
But the project was put on hold as the cost of the build contract grew by over £3 million.
Overall, it is now anticipated to be £12.5 million.
In 2022 contractors were on site for the first time in months to clear fencing and advertising from the site.
Mr Story who is also CEO at the Kingsmills Group which runs the Kingsmills and Ness Walk hotels, said: “I’m speaking to contractors just now.
“It’s been internally stripped out. We will take off the concrete panels and also remove the existing roof and create a new one with stunning views up the River Ness towards Ben Wyvis.”
He hopes the hotel will be completed by April 2026 depending on costs and the effects of the visitor levy.
“This visitor levy could be a benefit to tourists if it is carefully applied.
“But equally, if over egged, it could result in significant damage to our tourist industry.”
‘Still demand for hotels in Inverness’
Meanwhile, the man behind a 210-bed hotel proposed for Rose Street says he still intends to go ahead with the development.
Plans for the £20 million six-storey Hampton by Hilton were unveiled by Stewart Campbell, a director of SRP Inverness Ltd, in February 2019.
They were approved by Highland councillors in October 2019.
Mr Campbell says there is still demand for hotels in Inverness.
However, a timescale on the project proceeding remains uncertain.
“It all depends on the economy, it depends on when the world sorts itself out.
“There is still a big demand, the market is still strong. Inverness definitely needs more hotels.
“But unfortunately its just too expensive to build at the moment.
“We are waiting on the economics of construction to make sense.
“But you would be a bit daft to do it at the moment as you would be putting good money after bad.”
Future of Ironworks site still uncertain
Another 155-bed hotel is earmarked for the former Ironworks site in Academy Street.
Councillors voted in August 2022 to approve Bricks Capital’s plans for a Courtyard by Marriott hotel.
But two years since permission was granted, and 18 months after the Ironworks shut, there are no signs of development.
Repeated attempts to contact Bricks have been unsuccessful.
Fraser Peterkin, chairman of the Highland Hotels Association, said: “I think there is a desire from some big operators to come to the city.
“But if they have done their business plan for 5-6 years and then revised it after Covid the returns will not look as good as they were before.”
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