THE chief executive of one of the UK's fastest growing privately-owned hotel groups has spoken of the growth potential for York's tourism sector following his company's £75 million investment in the city.

Splendid Hospitality Group this week officially opened the newest hotel to its 16-strong portfolio as the ribbon was cut at the Hotel Indigo in Walmgate.

The 101-bedroom hotel is the Group's second Indigo-branded venture, following in the footsteps of its Edinburgh site, and its third hotel in York.

Splendid Hospitality also and operates the Holiday Inn Express, and as of August last year, the Grand Hotel, previously known as the Cedar Court Grand, in Station Rise.

The York collection represents a £75 million investment in the city by Splendid, which chief executive Stuart Bailey expects will pay dividends thanks to York's "vibrant" and "growing" tourism scene.

He said: "We like York as a city. It has the business mix and the visitor mix and is great for the type of hotels that we run and operate.

"There's a good core business mix during the week, and a good strong leisure mix at the weekend, which helps us across all our range.

"I think York's visitor market will continue to grow, especially if you look at the kind of events coming into York.

"Also we see people going on staycations more and more, and York is on everyone's list for somewhere to go. We also see a lot more Far-East and Asia specific visitors coming."

Splendid Hospitality is planning further investment in the city after earlier this year revealed plans for a £15 million extension at the Grand Hotel after purchasing neighbouring office block Roman House, in which is plans to double the hotel's occupancy with an additional 107 new rooms.

Plans have now been submitted to City of York Council for a two-year renovation project, which also includes upgrading rooms in the existing hotel, converting the former offices block into a new "wing" creating 107 "executive suits", and creating a 160-seater restaurant with outdoor terrace and a valet parking area with space for up to 15 vehicles.

The move will generate an additional £1.7 million of annual visitor expenditure for the local economy, according to Splendid's planning agents.

As well as directly creating 30 full time jobs at the hotel and potentially a further 10 to 15 part time jobs, Splendid believes its investment will "indirectly stimulate" the generation of up to 100 further jobs in York, and a further 150 construction jobs during the development work.

Mr Bailey said: "The Grant is a property I have known for a long time. Prior to buying it we had enjoyed a very good experience in York, and knew what the city was about and its demographics.

"It's very rare that something like the Grand becomes available in the UK. It's an up market site and a unique business and fitted our portfolio superbly.

"The Grand runs at very good occupancy so we knew there was the potential to expand. We are awaiting a decision later this summer, and hope to get work underway as soon as possible if we get the go-ahead."