The team behind Watergate Bay Hotel in Cornwall has signed a lease agreement with developer Urban Splash for a £18m hotel in Plymouth’s Royal William Yard.
The pair plan to convert the existing Melville building into a 60-key "stunning destination boutique hotel" due to open in 2015, according to a report in The Herald.
Facilities will include two restaurants, a cocktail bar, members’ club, a 25m swimming pool and events space, with building works expected to start in Spring 2014.
The design of the hotel will be inspired by the building’s clock tower and courtyard overlooking the marina.
Watergate Bay Hotel managing director Will Ashworth told The Herald: "Our north Cornwall hotel has its own special sense of style and tone, and our aim is to take this and develop it in a way that is right for Royal William Yard.
"We are keen to create a business that plays a significant part in the plans for the regeneration of Plymouth."
Nathan Cornish, from Urban Splash, said: "This is a significant milestone in our redevelopment of Royal William Yard and we are very pleased at entering into an agreement with Watergate Bay.
"It has long been our intention to bring a quality hotel operator to the yard and this announcement is a big step in making this a reality.
Watergate Bay and Urban Splash will be seeking approval of planning permission over coming months, liaising with architects, Gillespie Yunnie, Plymouth City Council and English Heritage.