A CITY centre car park in Glasgow has been sold by the council for £6.75million and is destined to become a 395 bedroomed hotel.

The Ingram Street site, currently leased to National Car Parks Limited, was today approved for sale by the council's executive committee.

Merchant Hotel Glasgow Limited intends to create a part luxury budget hotel, inspired by the Hoxton in Shoreditch, London, and New York's Soho Grand Centre, a council spokesman said.

The hotel will also feature two ground floor entrances, four restaurants, a bar, coffee shop, an ‘urban garden’, meeting rooms and private dining rooms.

Bailie Liz Cameron, responsible for jobs and the economy with the council, said: "The sale of this Ingram Street site will not only generate a major contribution to the public purse, but develop a key site in the city centre.

"The developer’s commitment to a high quality design sympathetic to the surrounding building is very welcome, and will I’m sure bring even more visitors day and night to this very attractive district in Glasgow. We have now taken another step towards the complete regeneration of the Merchant City.”