The ugly uncompleted remains of Birmingham’s first five-star hotel could be disguised by a giant advertising hoarding for up to five years.

City planners are set to allow a 118ft x 38ft structure to hide two concrete pillars at Snow Hill Queensway.

The two blocks are all that exist of a bid by developers Ballymore to build a towering luxury hotel and apartments.

The company pulled the plug on the £500 million scheme at the height of the recession and credit crunch in 2008.

Anglo Irish bank withdrew funding amid a retreat from commercial property, putting paid to Phase Two of the Snow Hill project – a 43-storey residential block with 332 apartments and a 23-storey hotel designed by Birmingham architect Glenn Howells.

US operator Starwood Hotels & Resorts had been lined up to open a 198-bedroom Westin Hotel and Spa in the finished building, billed as Birmingham’s first five-star hotel.

Now advertising agents Ocean Outdoor are seeking planning permission to drape the hoarding around the concrete blocks.

The company wishes to be able to display advertising on the gateway site into the city centre until 2015, although the banners would be removed before then if agreement can be reached to continue with development on the site.

City planning officer Vicki Neale admitted that the council’s transportation department lodged an objection on public safety grounds when the application was first submitted. There were fears that the advertisement, illuminated by 13 overhead lights, could be a hazard at the busy Queensway-Snow Hill junction.

But the objection was withdrawn after the applicants agreed to raise the hoarding clear of traffic lights.

Ms Neale, who is recommending the planning committee to approve the application, added: “The tall exposed cores represent a particularly unsightly feature in a very prominent location in St Chad’s Queensway. The proposed banner would screen off eye level view of the cores, particularly close to the site and therefore improve the visual amenities of the area in advance of recommencement of development.

“Adverts are by their nature highly visible and this hoarding would be sighted at a prominent junction . Traffic stopped on both Old Snow Hill and St Chad’s Circus Queensway would have a clear view of the hoarding.

“The site is located a short distance away from St Chad’s Cathedral which is Grade II* listed. However, I am satisfied that due to the physical separation between the site and the cathedral, the proposed hoarding would not have an impact upon views towards the cathedral from any direction.”

The future of the Snow Hill site was cast into further doubt last week when it emerged that Ballymore have only a three-year timescale to complete phase two of the scheme – a £110 million luxury office block. If the building is not ready for occupation by December 2013, Birmingham law firm Wragge & Co can walk away from an agreement to occupy the offices.

However, Wragge insists it remains committed to its move to Snow Hill which it said would be a “superb global headquarters”.

Ballymore is seeking new funding to get the offices built.