The new hotel, which will be located in one of the city’s historic Victorian buildings on King Street, is set to open by the beginning of the festive period next year with a major

refurbishment scheduled to begin in January.

It was acquired in 2006 by Adamo’s owner, the multimillionaire waste disposal tycoon Euan Snowie, but development plans were put on hold as the global recession took hold the following year.

The building, which dates back to 1830, was designed by renowned Scottish architect William Burn, best known as the architect of the John Watson’s Hospital – now the Scottish National Gallery of Modern Art – in central Edinburgh, St John’s Church, also in the capital, Blairquhan Castle in South Ayrshire, and Inverness Castle.

Rodney Doig, operations director for the Adamo Hotel Group, said: “Our new hotel will be the group’s third, and we like to think this is going to be Stirling’s first boutique hotel. It will have between eight and 11 rooms.

“Our plan is for the bar and restaurant to open for the festive period next year, and for the rooms to be completely refurbished soon afterward.

“This is a major refurbishment, involving serious structural changes.

“The building has been empty for 12 years, but before that it was used by Stirling Council, which is where Mr Snowie acquired it from.”

He added: “The new hotel will be marketed at overseas visitors to Stirling. We have a definite sense that while Stirling is one of the great historic centres of Scotland, it is not particular well-served for the tourism market.

“There are hotels, of course, but there needs to be more of them and they need to be more varied.”

Snowie began his Adamo Hotel Group with the 16-room Adamo Bridge of Allan, and in October he acquired Osta, which soon became the Adamo Stirling. Asked about future of the group, Doig said: “We are not looking to expand for the sake of it, but we certainly feel we could go on when the opportunity presents itself.”

Snowie hit the headlines earlier this month after he battled in vain to save his children’s ponies from a stable fire at his £4m home on the grounds of

Boquhan House, at Kippen, Stirlingshire.

He made his fortune from the foot-and-mouth crisis, during which his waste disposal company was paid around £38m to dispose of millions of cow carcasses.

Snowie used the proceeds to buy Boquhan House and its 70-acre estate and to launch other business ventures.