WORK is set to start on the 245-bed AC by Marriott hotel in Glasgow in a move hailed as a major step forward in a £100 million development at the north-east corner of George Square.

The hotel is described as a key part of the project which includes a wider blueprint to create a neighbourhood with studios, shops and cafes, called Love Loan.

Chris Stewart Group, selected as preferred developer by Glasgow City Council in 2015, is finishing demolition works and will start building the new hotel “in the coming months”.

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It said the hotel represents the first stage in delivering “an experience and lifestyle-led destination”, skirting Merchant City and the revamped Queen Street Station.

The hotel will fill an 80-year old gap site. Love Loan will also include low-carbon homes with an electric car club and extensive bike storage.

Chris Stewart, chief executive of Chris Stewart Group, said: “We have a great relationship with Marriott having opened the Courtyard hotel in Edinburgh a number of years ago.

“We’re delighted to be working with them again on the same franchise basis, this time bringing their AC brand to Scotland. The interiors of the hotel are very much understated elegance and timeless in style, which works in both the new build element as well as the A-listed 266 George Street element.”

A new pedestrian lane, which will be titled Love Loan, will provide a link from North Frederick Street to John Street, offering thoroughfare for University of Strathclyde students and faculty, as well as residents, visitors and hotel guests. It will “underpin the area as a place to live, work and visit”.