An Australian hospitality chain is behind £100 million plans to develop a landmark luxury hotel on one of Birmingham’s most run-down city centre sites.

The Sydney-based StayWell Group and its investment arm Seven Capital want to convert the derelict Auchinleck House office block into a four-star hotel and conference centre and revamp the run-down Edgbaston Five Ways shopping complex.

The 1962-built 12-storey tower block has been largely empty for several years and a number of attempts to redevelop the site, either as offices, or apartments, have faltered.

But Staywell, which owns a string of hotels in Australia, the Pacific and Asia, is looking to establish itself in Europe and has decided to start in Birmingham by turning the run-down office block into a 300-room Park Regis Hotel.

The plans include a rooftop restaurant which, because of the building’s location at a high point on the city centre ridge, will offer views over Birmingham and beyond.

Seven Capital development director Andy Robinson said: “This site has been languishing for some time and offers an ideal development opportunity for the group.

“We are making a statement with this. It is a major gateway entrance to the city.

“This is a very important development for us. The group needs to put a flag in the ground in Europe. It is a prestigious development which will support further expansion in the UK and Europe.”

He said that the Government’s Business Premises Renovation Allowance (BPRA), which offers tax breaks to developments which re-use empty buildings such as Auchinleck House, makes the scheme viable.

The allowance ends in April, prompting the company to pushed through a simple planning application, being heard on Thursday(January 12), which will secure permission for the conversion of the office into a hotel.

In a report to the committee, planning officer Joanne Todd said: “The StayWell group is one of the largest independently owned hotel management groups in the Asia Pacific and operate two high-profile hotel brands.

"However, they are not currently represented in Europe and are looking for this site to be their flagship scheme for the UK and European market.

“The proposal would result in the reoccupation and refurbishment of an existing vacant building within an established and sustainable location and should therefore be approved.”

The conversions of Cumberland House, on Broad Street, and Kennedy Tower at Snow Hill, both also set to become hotels, have been developed under the BPRA scheme.

A second planning application for Five Ways, due to be heard within the next two months, will cover the redevelopment of the shopping complex and construction of a conference centre.

If approved the company hopes to begin work later this year and open in 2014.

The plans include a major conference centre to the rear of the site for 1,200 and 500 capacity rooms, plus various break out rooms.

A large store will also be developed at the rear, while the existing shopping parade, which currently includes Boots and Greggs, will be given a 21st century make over.

The landmark building, on one of Birmingham city centre’s major commuter routes, the A456, was designed by architect Seymour Harris and used to feature an illuminated mural.