Ireland’s largest hotel operator Dalata has announced the acquisition of a site in Dublin on which it intends to develop a new €40m hotel.

It has paid €11.9m for the 0.95 acre site of the former Charlemont Clinic on the Grand Canal.

Dalata said the site has permission for a four-star, 181-bedroom hotel with restaurant, café/bar and business facilities.

Planning for the site also includes three residential apartments and basement car parking.

The investment, including the site purchase, will be over €40m.

The new Clayton Hotel, expected to open in the first half of 2018, will employ around 100 full time staff.

The site, located in Dublin 2, fronts on to Charlemont Street and Charlemont Mall on the Grand Canal.

Deputy CEO Business Development and Finance at Dalata Dermot Crowley said “the Dublin hotel market is significantly undersupplied at present and we are pleased to bring these additional bedrooms to the city."