A new four-star hotel is to be built in Aberdeen, on the site of the former Robert Gordon University (RGU), it has been announced.

The Sandman Hotel Group, which is Canada's fastest growing, privately-owned hospitality company, will invest more than £20m to transform an RGU building on St Andrews Street into a four-star, premium hotel complex. It will consist of 220 rooms, including 61 one-bedroom suites, a restaurant and convention facilities.

Some 80 new jobs will be created during the construction phase of the project, with more than 150 positions created within the hotel and restaurant operations.

The firm acquired the site from RGU in a multi-million pound deal. The agreement will also allow the university to focus on the development of its Garthdee campus.

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Welcoming the investment, First Minister Alex Salmond said: "Today's announcement by the Sandman Hotel Group is excellent news for Aberdeen's tourism industry.

"While this new hotel will undoubtedly benefit business tourism in the Aberdeen area, visitor numbers from overseas markets continue to grow. The Sandman Hotel Group has seen the golden opportunity Scotland presents and I'm delighted to see them investing upward of £20 million in their new Aberdeen city centre hotel."

Taj Kassam, President of Sandman Hotel Group and The Sutton Place Hotels, said: "We are thrilled to open our first hotel in Scotland and partner with RGU. Our brand of hospitality fits perfectly into the iconic city of Aberdeen. I was educated in Scotland and this is where I began my career, so it gives us a great feeling of pride and excitement to open a property here."

Principal of Robert Gordon University, Professor Ferdinand von Prondzynski, added: "The sale of St Andrews Street to Sandman Hotel Group will provide major benefits to the city as well as RGU. The capital received will allow us to continue with the development of our teaching and learning facilities, providing our students with an outstanding educational environment.

"In addition, the city will benefit from a new four-star hotel and a development which will help drive forward the regeneration of Aberdeen's city centre."

(JP/CD)