Kingsgate delays Royal Insurance hotel

The £40m redevelopment of the much-loved Royal Insurance Building on Dale and North John Streets in Liverpool city centre has been put on hold for six months by developer Kingsgate London Properties.

The landmark building, known for its gold domed roof, has planning consent for refurbishment into a hotel.

Kingsgate was in talks with Irish, Icelandic and HBOS banks, all of which have been hit hard by the financial crisis, and is still seeking finance for the project.

The developer, which acquired a long leasehold for the building from owner Liverpool-based investor Tony Criss, is also hoping to submit revised plans for the scheme after changing minor details.

Kingsgate contacted competing construction contractors in recent days to explain that the tender contest would re-open in spring 2009, pending a better funding climate in the New Year.

All parties declined to comment.