While work on a planned £14m expansion at Belfast's successful Merchant Hotel – a former bank headquarters - is about to begin, it has been revealed that the city centre is to gain another 'landmark' hotel.

Plans for a new £10m restoration and development project by the man behind the Merchant Hotel, Bill Wolsey, involves the restoration of yet another former bank, the National in High Street.

It is part of an overall £24m expansion plan for the area which Mr Wolsey said would bring further interest and appeal to the city's burgeoning Cathedral Quarter - and together create up to 270 full and part-time jobs.

The National Hotel will be a four star development offering 50 rooms and suites featuring the same high standards as the Merchant.

It will be a mix of modern and old, with a new building adjoining the Grade One listed Victorian building and will feature tearooms.

"We think there's a market for a stylish hotel and as luck would have it we were able to buy the two sites: the site the National is on and the adjoining site, which runs into it from Skipper Street," he said.

"The Merchant is running at 83% capacity so there is a market for what we do. We think there will be a market for something that's equally as stylish but just given a slightly different direction.

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"I'm confident that the National will appeal because I think we do things well here. This is a 'grand hotel' while the National will be modern and forward looking," he explained.

On foot of the expansion of the existing Merchant Hotel, with planning permission expected shortly for another 45 bedrooms and suites, a spa, a jazz bar on the ground floor and function rooms on the first floor, the owner will seek planning authorisation for the vacant site on Skipper Street shortly too.

Once again, specialist architectural practice Consarc has been engaged to oversee the project, which includes the restoration of the original ground floor facade that was remodelled in or around the early 1980s.

"We are going to completely restore the National building, taking away the shambles that the ground floor is at the moment and restoring faithfully what was there," said Mr Wolsey.

"Above that, we'll be putting in beautiful suites, similar in some ways to the Merchant, with highly ornate and decorated ceilings so the juxtaposition between that building and the new all-modern building behind will make the hotel a very interesting place to stay."

The National is expected to be opened by 2010 and will employ around 50 full-time and up to 100 part-time staff.

"I loved the idea of restoring yet another old building," added Mr Wolsey.

"It fits in with what we do. The idea of having the tearooms on the ground floor I think will work and the challenge to get the juxtaposition right between a beautiful, highly ornate Victorian building and a modern piece of interesting architecture appeals to us as well."

As part of the overall project, Mr Wolsey also revealed he has been in discussion with DRD Roads Service to "adopt" Skipper Street onto which both hotels will eventually open.

"We've been talking to Roads Service for about six months to pedestrianise Skipper Street.

"We intend investing £100,000 in street sculpture and lighting to make Skipper Street a beautiful street," he said.

(BMcC)