A BUDGET 86-bed hotel is being lined up to open in a bid to attract more tourists to Colchester.

A number of restaurants are also in the queue to open in a new complex which is to be built on land between Firstsite and Queen Street.

Council bosses have appointed a developer to bring a chain hotel to the eastern side of Colchester town centre and it is understood sensitive talks with a specific operator are already underway.

Exact details of the discussions are not being made public.

A Colchester Council spokesman said: “The developer is negotiating with a hotel operator, but it would not be appropriate to give any names as they are commercially sensitive at this stage.

“However, we have always described the end-user as a budget offer as this would give additional balance to the overall visitor accommodation offer in Colchester.”

The spokesman also said restaurants would also be included in the development, adding: “The developer is carrying out a marketing process with its agents and we understand that there is good demand for space within this regeneration area.”

Plans to open a Curzon cinema in the former Keddies building have already been rubber-stamped and it is expected to open next year.

The spokesman added: “The development plans for this area are a key part of the St Botolph’s regeneration, enabling the transformation of the land around Firstsite and Curzon to further establish this area as a new destination within the town centre, providing new restaurants and a hotel and new public event spaces.”

Tim Young, deputy leader of the council and councillor responsible for regeneration, said: “I am delighted that private sector investors are seeing the tourism potential in Colchester and the surrounding area.

“Increasing the range of visitor accommodation is important in helping the borough to become a short-break destination, as well as a popular destination for day tripping.”

He added: “Such investments are making a significant contribution to the local economy.

“For instance, by enabling conference tourism to take place, Colchester will welcome two national conferences in the autumn - one for museum professionals at Colchester Castle and the other debating latest thinking around town centres at Firstsite.”

Latest figures suggest the value of tourists’ spend in Colchester is worth £245million per year, with an additional £76.4million being generated by businesses supplying tourism businesses with goods and services.

The figures also state tourism supports 5,967 jobs in the borough.