BUILDING work has started on a new £4.7million hotel on land in Burnley which has been derelict for several years.

The Express by Holiday Inn is being built near the Old Spa Mill site off Pendle Way, Burnley, and will feature 102 rooms and a range of meeting rooms aimed at businesses.

It is anticipated a number of new jobs will be created by the development, but it is not yet known how many.

Plans for a hotel on the site have been in the pipeline for five years with similar schemes failing to get off the ground.

Coun Peter Doyle, who represents Whittlefield and Ightenhill, said a small number of constituents had contacted him with concerns the development would create traffic problems.

He said: "It is good to welcome private investment into the borough which is going to create jobs.

"We have put in a 20 miles-per-hour speed limit and hopefully any additional traffic will not be great enough to cause any problems."

Developer Starboard Hotels and Inter Continental Hotels Group submitted a planning application earlier this year after previous plans for a hotel, health club, shops and a homeless hostel, proposed by another company collapsed.

As well as business facilities the hotel will also have a bar, dining facilities and coach parking.

Building and refurbishment firm, Interior Services Group, which is based in London, has been chosen to construct the four-storey hotel which should be completed next summer.

Planning permission has also been granted to build a pub and restaurant adjoining the hotel.

A 20,000 sq ft office development could also be built on the site and the developers are hoping to attract national companies to invest in the project.

ISG is currently building a 33-storey multi-million pound residential, office and leisure development near Liverpool Street Station, London, which will be home to 1,200 students.