LIVERPOOL’S former Scandinavian hotel is set for a £20m restoration, after winning planning permission.

The key landmark in Chinatown, parts of which date back to 1859, has been derelict for 30 years.

Yesterday, planners emphatically backed the plans to create a 180-bedroom Marriott, saying it was a crucial part of the city centre’s continued regeneration.

Liverpool-based developers Downing are behind the latest plans for the building at the corner of Nelson Street and Duke Street.

The building has been hit by a number of setbacks over the past few years. It was originally hoped the building would be re-opened in time for the city’s Capital of Culture celebrations.

Lord Storey told the planning committee: “This is a hugely important for the continued regeneration of the city centre in general and this area in particular.”

Ian Burleigh, whose firm Ica Architects designed the project, said the scheme had taken advantage of the little known-about Building Premise Renovation Allowance (BPRA) tax relief scheme.

“BPRA will be abolished in April, 2012, so we must be on site before then, otherwise our investment evaporates overnight.

“We have an investment vehicle which is made up of a syndicate of private investors who are attracted by the tax relief, but no body is going to make a lot of money out of it.”