PLANS to create a major new hotel at a key landmark building, in the heart of Liverpool’s Chinatown, could move a step closer today.

Members of the city’s planning authority are set to approve an application to convert the former Scandinavian Hotel into a new 180-bedroom hotel.

The building, some of which dates back to 1859, has sat empty since the 1980s. It was supposed to re-open in time for the city’s 2008 Capital of Culture celebrations.

The planned development by Downing involves a £20m refurbishment of the building, on the corner of Duke Street and Nelson Street, to create a Courtyard by Marriott-branded hotel.

A report to today’s planning committee meeting said: “The hotel proposal is very much welcomed as an important and much-needed investment in the area.

“The proposal offers the opportunity to bring existing vacant buildings, which are considered to contribute positively to the special character and appearance of the conservation area back into active use.”

Earlier plans to regenerate the site fell through, with the council acquiring the building in 2007 under a compulsory purchase order (CPO).