Plans to construct a 134-bedroom hotel on Union Street, Aberdeen, have been approved by the Council.

The application, submitted by Tip Top Properties, is for a nine-storey hotel with a rooftop restaurant, plus public entrances from both Union Street and Langstane Place.

The building, which will consist of sections of varying heights, will provide approximately 7,000 square metres floorspace of accommodation, with the nine-storey section being situated in the central area of the plot. It will provide 100 jobs – 20 full-time and 80 part-time – and will help stimulate the regeneration of the west end of the city centre.

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Convener Ramsay Milne said: "The whole area will be improved by this hotel and it's essential that we do what we can to improve and regenerate the west end of the city centre. This is an important development, not only for the regeneration of the city centre, but also for business and employment in Aberdeen, and to ensure that the city remains an attractive destination for business and leisure tourists who are so important to the economy.

"We do not have enough hotel rooms in Aberdeen – and that's not just on occasions when the whole oil industry comes to Aberdeen. It's an issue on a regular basis and that is reflected in the prices.

"The prices of hotels in Aberdeen are very, very high because the demand for rooms is so high. This has an impact on business and the local economy. We are losing business to other places because of a lack of hotel rooms."

(JP/CD)