A DEVELOPMENT company and Premier Inn are said to be in “advanced discussions” over the chain opening a hotel in Bury St Edmunds.

M & D Developments was granted planning permission in July for part of New Shire Hall in Raingate Street to be used as a hotel.Travelodge had prepared a scheme for the building, but David Harris, a director of M & D Developments, said Premier Inn - which is a brand within the Whitbread Hotels and Restaurants company - was now on the cards as a tenant.

He said: “We are now negotiating and we are in advanced discussions with them.”

Mr Harris said M & D Developments had been talking with Travelodge, but the firm was not comfortable moving forward with this hotel chain due to its well-publicised debts, which means it needs to find new operators for some of its hotels. He said he hoped, if the deal is finalised with Premier Inn, the project would start within three months and be completed within 12. He added how planning permission would be needed for the alterations.

Guy Kemsley, acquisition manager for Whitbread Hotels and Restaurants, would not confirm discussions were taking place over New Shire Hall, but did say: “Bury St Edmunds is one of the towns we want to be in and would be an ideal location for Premier Inn.”