The developer behind the collapsed Connaught Square scheme in Digbeth is confident it can find finance to build two hotels and a conference centre near the site of its original abandoned project.

Irish developer Naus Group has applied for outline consent to build a mixed-use scheme including a three-star and four-star hotel as well as retail units, offices and a multi-storey carpark.

The firm wants to develop the complex in the Harrison Drape building in Bradford Street, next to St Anne’s Church, incorporating the frontage of the former curtain and fabric warehouse.

Naus Group was the developer behind the nearby Connaught Square scheme, which was placed into administration by its crisis-hit backers Allied Irish Bank (AIB) last year.

The land opposite Digbeth Coach Station was originally intended to be a mixed-use development with 658 new apartments, a four-star hotel with sky bar and a new Irish Centre, shops, restaurants and a spa.

But the £150 million scheme was stopped in its tracks when administrators Begbies Traynor were called in by AIB, which was owed £24 million by Connaught Square, a subsidiary which was 51 per cent owned by Naus Group.No buyer has come forward for the scheme.

Ronan Mellett, chief executive of Dublin-based Naus Group, said he was confident of raising finance for the new hotel venture and stressed that it was difficulties at Allied Irish Bank which precipitated the collapse of Connaught Square.

“We’re dealing with different banks so we have no issues there,” he said. “There were different reasons for Connaught Square.”

Naus Group believes there is significant opportunity to bring hotel operators into Digbeth once planning permission has been secured.

“The permission is for two hotels and a conference centre and a bit of office space,” said Mr Mellett.

“The Birmingham hotel market is probably undersupplied with quality hotels, and by quality hotels I mean modern hotels.  We think there is opportunity for a new operator to come in.

“Digbeth is the city centre and it’s going to be an up and coming area of Birmingham – it’s a blank canvas.”

As well as Connaught Square, Digbeth has been waiting for several regeneration projects to come to fruition over the last few years, including the revamp of the Wholesale Markets when traders move to a new site in Witton, as well as the flagship Beorma Quarter scheme.

New-build schemes in Digbeth have in the past proved controversial as tensions have arisen over noise from the pubs and bars in the area disturbing residents in recently-built flats.

But the new proposals from Naus Group were welcomed by Pat O’Neill, the chairman of the Irish Quarter Partnership.

“It’s been left so derelict down there so it would be very welcome to have somebody invest,” he said.

“It would be great to have a multi-storey car park – it’s very necessary as parking is at a premium.

“The hotels will be fantastic as well because Birmingham needs hotels.

“Obviously, Digbeth is close to the city centre and the coach station so it’s very accessible.”