ENTERPRISE bosses have pulled the plug on a £300 million hotel development because of the economic downturn.

ENTERPRISE bosses have pulled the plug on a £300 million hotel development because of the economic downturn.

Plans for the towering five-star hotel, which would have been the tallest building in Glasgow, have been shelved leaving a hole in the heart of the International Financial Services District.

The waterfront site at 236 Broomielaw was the subject of a competition won by Kenmore Property Group which was named preferred developers.

But the 30-floor design which also included two 14-storey office blocks next door, has now been put on ice because of the unstable economic climate.

Bosses today insisted they would think about re-marketing the site at a later date, but would give no timescale on when a new blueprint would be commissioned.

A spokeswoman for Scottish Enterprise, which owns the site, said: "We remain committed to securing a high quality hotel and commercial development for the site. However, in light of the recent economic downturn we are reconsidering the options for re-marketing the site."

The new hotel promised to become a prominent landmark. And if the plans had gone ahead, only the 416ft-high Glasgow Science Centre tower, a structure rather than a building, would have been taller.

Several architects had drawn up dramatic proposals for the brownfield land near the Kingston Bridge. And agents claimed there had been a flurry of inquiries with around 100 parties interested in the site.

Kenmore Property Group today said it was "no longer involved"

in the £300m project which also featured the prestigious Snodgrass Mill office development.

And Glasgow architects Gordon Murray and Alan Dunlop, who drew up a blueprint for the development, refused to comment on the axe falling on the scheme.

Among the parties which had been tipped to let the landmark building were Starwood UK which runs the prestigious Sheraton Hotel group.

A spokeswoman for Starwood UK said: "We never had anything confirmed regarding the site."

The collapse of the scheme is a blow for Glasgow City Council which has championed the International Financial Services District as a catalyst for the regeneration of the waterfront.

A council spokesman was confident the loss of the scheme would not dent the area's popularity.

He said: "Recent developments along both sides of the river underline the commitment and confidence the council and partner agencies have in the regeneration of the Clyde."

But one development which is still going ahead is the £125m Argyle International Hotel which will tower above the city's International Financial Services District.

Businessman Charles Price plans to build Glasgow's first ever six-star hotel on the corner of Argyle Street and Robertson Street.