A LUXURY hotel group has bought the former City of York Council offices in St Leonard’s Place, York.

Ambiance Hotels, a Warwickshire-based company, will refurbish the Grade II-listed building to convert it into a four-star hotel employing 80 to 100 people.

The company, which owns the Kimberley Hotel in Harrogate and other boutique hotels in the North and Midlands, is currently in discussions to appoint a flagship operator to run the hotel.

Stewart Lewis, director of Ambiance Hotels, said: “This was a unique opportunity to acquire a stunning building at the heart of the city’s major attractions.

“York has a proven pedigree as a visitor destination and we are excited about developing an iconic hotel that creates a new chapter in the special history of St. Leonard’s Place.”

Coun James Alexander, leader of City of York Council, said: “I’m pleased to hear that not only will this iconic building be refurbished in a fitting manner, adding to York’s offer as a visitor destination, but this news represents an investment into the city of £20 million and brings with it a further 80 to 100 jobs.

“It is good to see such private sector investment following the significant public sector investment in the built environment of York.”

Developer Rushbond Plc was granted planning permission in August to turn the building, which dates from 1831, into an 88-bedroom hotel following the council’s move to its new West Offices complex.

Jonathan Maud, managing director of Rushbond Plc, the developer which sold the property to Ambiance Hotels, said: “St Leonard’s Place is a wonderful crescent that is now set for the start of a new life following the relocation of the council.

“Ambiance Hotels plan to operate a high quality, luxury hotel that represents further investment into this part of the City, supporting its fabulous array of cultural attractions.”

Work on the property is expected to start in spring 2014 in partnership with Harcourt Capital and Hotel Land & Development.