UP TO 400 local construction jobs are to be generated by a blockbuster project to build a new five-star hotel in North Yorkshire.

The new employment hope is sparked by York-based developer, the Skelwith Group, awarding a £40 million contract to Wates Construction.

In September, the national builder will begin to create the Flaxby Country Resort off the A59, between Knaresborough and York, promising up to 400 local construction jobs, plus “using local tradesmen and women wherever possible”.

Wates also proposes to use local sub-contractors. Its recently completed £17 million Bridlington Spa project involved up to 60 per cent of its spend on hiring local firms.

The Skelwith Group has already sold to investors in advance 290 of the 300 rooms planned for the hotel, some for as much as £500,000. Total yield is £78.2 million.

The 80-week build of the 240,000 sq ft hotel and leisure complex means the first guests should arrive – some winging in on one of its four helipads – in mid-2011.

Features will include a luxury spa, bars, restaurants and boutiques all set around the existing 27-hole golf course, nestling in nearly 300 acres of North Yorkshire countryside. By the time the hotel is fitted out and a new roundabout is constructed for ease of traffic from the A59, the venture should be worth about £100 million.

Paul Ellis, managing director of The Skelwith Group, said: “We went through a thorough selection process and are delighted to be working with Wates.

“They have the experience, knowledge and capabilities to deliver this magnificent project on time and on budget. In the current economic climate this jobs boost will be a great fillip to the local and regional economy.

“The vision for the resort is to bring together everything that is great about the area and the county and this includes using local businesses and suppliers.”

David Price, Wates Construction’s regional director, said: “The Flaxby Country Resort is good news for the people of North Yorkshire, who will no doubt benefit from the new jobs that this project will create – both before and after completion.

“I am delighted the Skelwith Group has appointed us as its main contractor for the project and am confident that our team will work hard to deliver on its promise.”

As well as a the Bridlington Spa project, the Wates Construction recently completed the Manor School project in York.