The historic Royal William Yard in Plymouth, Devon, is to be transformed into a 60-bedroom boutique hotel to be operated by the owners of Cornwall's award-winning Watergate Bay hotel (pictured).
An agreement has been signed between the developer Urban Splash and Watergate Bay to create a hotel within the Melville building, centred around a distinctive clock tower and courtyard, overlooking the marina, at a cost of £18m.
Will Ashworth, managing director of the Watergate Bay hotel, said there is the potential to create something "really exciting" at Royal William Yard.
"We have a distinctive approach to hospitality and active relaxation lies at the heart of what we do," he said. "Our north Cornwall hotel has its own special sense of style and tone, and our aim is to take this and develop it in a way that is right for Royal William Yard.
"We are keen to create a business that plays a significant part in the plans for the regeneration of Plymouth."
The Watergate Bay hotel in Newquay has been transformed since Ashworth took over the running of the hotel from his parents, John and Mary, in 2004. It has undergone a £8m redevelopment and now incorporates two restaurants in the hotel as well as the Beach Hut eaterie, the Extreme Academy, Swim Club and Jamie Oliver's Fifteen Cornwall.
Nathan Cornish of Urban Splash said the agreement with Watergate Bay is a significant milestone in the redevelopment of Royal William Yard. "It has long been our intention to bring a quality hotel operator to the Yard.
Built in the early 19th century and formerly used by the Royal Navy as a victualling depot, where food and drink were stored, the yard was closed in 1992 and has since been the subject of various development plans. It is now Grade-I-listed and part of a wider regeneration project for Portsmoth with the opening of cafes, bars, restaurants, art galleries, a museum and apartments.
Planning permission will now be sought to develop the Royal William Yard hotel.