This will see the full refurbishment of the building to create modern, flexible workspaces while retaining the traditional character.
The overall project is expected to cost around £900,000 with funding coming from the Council with significant input from the Stromness Townscape Heritage Initiative, including a contribution from the European Regional Development Fund.
The Council purchased the property in July 2008 as part of the Stromness Townscape Heritage Initiative.
It was the first purpose-built hotel in Orkney but closed in 1920. It was then used as accommodation for World War 2 servicemen and then as the original factory for Orkney Fudge until 1960. After that it was used for storage.
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Evelyn Mathershaw, Strategic Development Officer for the Council said: "The Commercial Hotel was identified early on in the Townscape Heritage Initiative application process as our flagship project.
"Securing the building has been integral to the success of the THI and by refurbishing it into flexible working space the Council has provided itself with a number of viable options for its future use."
Stromness Councillor and Chair of the Council’s Development and Regeneration Committee, Ian Johnstone, said: "The refurbishment of the Commercial Hotel has been a long-held ambition for Stromness and the THI project presented us with an opportunity to bring this prominent building back into use, thereby strengthening the core area of the town.
"The refurbishment opens up a number of possibilities for much needed economic development in the town and I look forward to seeing the changes that the refurbishment will bring to Stromness and to seeing the building come to life again."
R. Clouston Ltd was last week also awarded the contract for the restoration works at Ness Battery.
(GK/KMcA)
