YORK’S hotel-building boom could be set to continue with the £10 million transformation of an “eyesore” office block.

Plans have been unveiled to demolish Holgate Villa and replace it with a 97-bedroom hotel which could create between 30 and 50 jobs.

The firm behind the scheme said it was holding talks with three major chains.

The building, at the junction of Holgate Road and Lowther Terrace, dates back to the 1950s.

It is currently occupied by charities but The Villas Venture, which has drawn up the proposals, said refurbishing it was “not economically viable”.

It has submitted a planning application to City of York Council to level the site and build a five-storey hotel together with 25 car-parking spaces, with a decision expected to be made in the summer.

If it goes ahead, it would be the latest in a string of York hotel developments, which began with the opening of the £20 million Cedar Court Grand in Station Rise last year.

Proposals for a 120-bed hotel in Toft Green and a 102-room business in Walmgate have also been approved.

Earlier this month, The Press reported how developers were looking at the possibility of creating a 128-bedroom hotel on land behind the former Frog Hall pub in Layerthorpe, while a 60-bedroom budget hotel may also be built at Monks Cross.

Developer John Reeves, spokesman for The Villas Venture, said the companies in discussions over the Holgate Villa scheme ranged from budget to boutique hotel operators.

He said: “The building is an eyesore and also has structural issues, so its days as an office are coming to an end.

“Anything which helps the tourism sector in York has got to be welcomed, and in terms of location, with it being close to the city centre, the railway station and public transport, the site is just about perfect.”

As well as the permanent roles the hotel would offer, Mr Reeves said the development, if approved, would create a string of construction jobs.

A bar, restaurant and new footpath would be included in the scheme, with a statement submitted to the council by Leeds-based Thompson Spencer Architects saying it would help meet the “current large demand” for hotel accommodation in York.