THE second phase of insurance firm Hiscox's multi million pound development in York is moving forward as an international hotel operator buys part of the site.

Vastint Hospitality has purchased part of the Hiscox development site in Hungate as it looks to create a 120-bedroom Moxy Hotel in York.

When Hiscox's application for a new £19 million office, its largest outside of London, was approved in December 2013, outline planning permission was also granted for a neighbouring development, next to the Black Swan pub, to either include offices with groundfloor retail or leisure use, or a five-storey hotel.

This week agents at CBRE, acting on behalf of Hiscox, have sold the site to Vastint, which has revealed plans to develop a hotel under Marriott International's new economy brand Moxy.

Shaun Skidmore, senior director at CBRE said: "The creation of Hiscox’s landmark new offices has drawn a significant amount of attention to the Hungate area of York and this strategically positioned site holds clear potential for the creation of a new hotel to further complement the city’s leisure provision.

"A Moxy hotel would be a superb and unique addition to the York hotel scene, offering a fresh and contemporary experience for the younger end of the market.

"We are pleased to have concluded this deal and look forward to following the site’s progress."

The finishing touches are currently being installed at Hiscox's four-storey offices ahead of staff moving in over coming months.

The site will eventually house 500 workers in the offices, which have been designed by architects MAKE and feature cantilevered concrete frame, structural glass curtain walling and a winding staircase in a full-height atrium.

The Hiscox site was previously occupied by the Haymarket car park, York's ambulance station and the Peasholme Centre homeless hostel.

Hiscox announced in 2012 that it was eyeing up a move to York after looking for a location for its new flagship office outside London.

Plans for a 50,000 sq ft new-build office in Hungate were approved December 2013, and in October last year construction got under way as preparation of the on-site foundations was completed.