A 500-bedroom hotel is planned for a site opposite the Gresham Hotel in O'Connell Street, Dublin, following a Government decision not to locate a national conference centre there. Businessman Richard Quirke is to seek planning permission for the hotel on a one-acre site which includes Dr Quirkey's games arcade, the former Carlton Cinema and a vacant site recently acquired from businessman Noel O'Callaghan. An adjoining office block soon to be vacated by Fingal County Council is also expected to be converted into a hotel by the Regency group.

Mr Quirke is understood to be in negotiations with a US hotel chain which has expressed an interest in managing and taking an equity stake in the hotel. The development, which could cost up to £20 million, would also include an underground car-park to accommodate about 200 cars. The plans provide for the retention of the facade of the Carlton Cinema and the development of a large lobby behind it.

Although Dublin Corporation granted planning permission for a national conference centre on an enlarged site at Upper O'Connell Street. the Government has decided that the facility should be located at the RDS in Ballsbridge, Dublin 4.

The RDS is understood to be planning to build a substantial hotel as well as a national conference centre.