Ulster leisure mogul Lord Rana has reaffirmed his plans to build a luxury hotel at an historic Londonderry site.

Lord Rana's Andras group, which owns Belfast's Ramada Hotel, confirmed it is to prioritise the Derry project, at the site of the former Tillie and Henderson's factory.

Andras's original plans for a 14-storey, 144 room hotel were reject by planners in early 2005.

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Despite these proposals being shelved, a company spokesman said the redevelopment of the former shirt factory site is "being actively pursued".

Speaking to the Derry Journal, he said: "Consideration for planning a mixed use site, including an hotel are being actively pursued.

"Andras House remains very committed to redeveloping the site as a matter of priority. We will pursue the redevelopment plans as soon as economic circumstances allow," added the spokesman.

The factory building was flattened in 2003 following a fire at the site the previous year.

Tillie and Henderson's was once the worlds largest textile producer, and name checked by Karl Marx in his publication Das Kapital.

(PR/BMcC)