The site of the former City Hotel in Londonderry, Northern Ireland – destroyed by a bomb in 1974 – is to be turned into a £23m mixed-use development.

According to plans announced by the Department for Social Development, the scheme will comprise a boutique hotel and a restaurant as well as retail units and apartments built around a public inner courtyard.

Big Picture Developments will work alongside London-based urban designers Metropolitan Workshop and White Ink Architects from Belfast. Completion is expected by 2009.

Social development minister David Hanson said: “After many years of lying derelict, I am delighted to announce that the development of this site will encourage private sector investment.”

Big Picture director Barry Gilligan added: “We’re looking forward to sitting down with community, business and political representatives to present our plans, while at the same time moving ahead with the necessary agreements and permissions required to get started on site as soon as possible.”

Big Picture Developments is also converting the former Crumlin Road Courthouse in Belfast into a £25m hotel . Details: www.dsdni.gov.uk