A DESIGNER department store has unveiled plans to build a £5m five-star hotel complex which would double its current floor area and 65-strong workforce.

The award-winning Psyche store wants to build three floors above its premises in Middlesbrough, to create a 40-bedroom luxury hotel.

The multi-million pound investment would lead to the creation of at least 65 jobs, taking the number of employees at the Linthorpe Road store to 130.

The proposals would double the floor space of Psyche's current 35,000sq ft building, and would also include a 270-seat top-floor restaurant, rooftop terrace and water features.

A showpiece glass elevator is planned for the outside of the building, and the completed design would, at 20m high, be one of the tallest and most noticeable buildings in Middlesbrough's shopping district.

Steve Cochrane, owner of Psyche, said the project promised to be unique.

The plans are a revised version of plans submitted last year, which were for a £2m one-storey, 24-room hotel.

"We have spent three years drawing these plans up, making sure they are workable, and that they will be of the highest possible quality. The design is very complex and will make Psyche a landmark," he said.

"This will be unique in Middlesbrough and beyond. Not only will it be a first - and will double our floor space - it will also double our workforce, bringing new jobs here."

If permission for the development is given, work is due to be completed by November 2008.

The plans are part of a major revamp of Psyche, one of the leading designer stores in the North-East and voted among the most popular in the country.

The outlet - which also includes a record shop, bridal section, mini spa and nail bar - is undergoing a complete re-fit, which is due to be completed by September next year, and new lines are being added to the 150 labels that are stocked.

A pavement cafe is being planned for a pedestrianised area outside Psyche in Garnet Street, and the bistro will also act as a cocktail and wine bar during the evenings. Mr Cochrane, who first opened a boutique in Redcar in 1982 and moved into Psyche's current location four years ago, said he was hopeful the project would get the go-ahead when it goes before Middlesbrough Council's planning committee next month.

"This will definitely be a first for Middlesbrough and for the region, and we have consulted with planners, engineers, designers all the way to make sure this is feasible," he said.

"We have done everything to make sure this is something special."