A NEW luxury hotel is to be created in a historic former university headquarters, after councillors approved the £7.5m scheme today (Tuesday, November 11).

The Grade II-listed Old Shire Hall was built in 1896 as a home for Durham County Council and later housed Durham University.

Its design was ahead of its time, with grand Art Deco-style staircases and corridors.

The Victorian treasure, on Old Elvet, Durham City, has stood empty since 2012 but remains in a good condition, with the grand former council chamber still well preserved.

Today, Durham County Council backed plans to convert the building into a boutique hotel with 43 hotel bedrooms, 29 apart-hotel rooms, a 150-cover restaurant, leisure club and spa.

The project will create 60 new jobs and planning agent David Brocklehurst said his clients, Shaun Crawley and Kevin Brown, wanted to move ahead on site as quickly as possible.

Councillors approved the scheme unanimously.

Cllr Patrick Conway said it was a significant building for the city, he had been worried it would be empty for a lengthy period of time and he was very, very happy to support the proposals.

Cllr David Freeman said the development would result in a prestigious new building for the city, while pointing out it would probably outlive its 1960s replacement, the current County Hall.

Planning officer Barry Gavillet said assessment had identified a need for a high-quality hotel in Durham City.

Councillors discussed whether motorists should be allowed to access the new hotel from the rear, off Court Lane, deciding signs should be erected instructing them to use Old Elvet only, where there will be a new traffic light-controlled junction.

Durham University sold Old Shire Hall, once touted as a home for a North-East regional assembly, to the now defunct regional development agency One North East in 2008 for £4.2m.

When the agency was wound up, ownership passed to the Homes and Communities Agency, which sold it to Mr Crawley earlier this year.

Upmarket hotel chain Malmaison and Hotel du Vin had previously been credited with an interest in the building.

Mr Crawley said he would consider selling the building with planning permission, refurbishing it and selling it as ready to open or running it with a restaurant operator.