CONSTRUCTION group MMP has won the contract to build the £2.3m Bannatyne Hotel in Durham.

The Newton Aycliffe-based group has already started work on the 50-bed hotel, to be built next to the Bannatyne Fitness Centre at Belmont, Durham.

The hotel, owned by entrepreneur Duncan Bannatyne, will be the second Bannatyne Hotel, after the Grange Hotel in Darlington.

It is due for completion in October after a 27-week build programme.

Duncan Bannatyne, known as one of BBC2s "Dragons" on the Dragon's Den programme, is a self-made millionaire, worth an estimated £168m.

His enterprises also include Bannatyne Health Clubs, Bannatyne Casino, Bar Bannatyne and, more recently, Bannatyne Housing Limited.

MMP's Metek Building Systems division will carry out most of the work, using steel framing technology to cut down on building costs.

Michael O'Connell, chairman of the MMP Group, said: "We are using all the latest technology to build this hotel to the highest of standards."

The MMP Group was founded in 1986 by Mr O'Connell and has a turnover of about £50m.