A GIANT five-storey, four-star hotel could be built in Colchester.

Up to 50 jobs could be created by the proposals for a 74-bedroom boutique hotel and restaurant overlooking the River Colne.

An initial plan has been submitted to Colchester Council by the Elysium Group, a company which already owns five bars and restaurants around the town.

Founder Ash Afzalnia said the hotel, designed for land between the River Lodge pub and Trotters bar at Middleborough, would benefit Colchester.

He added: “This multi-million pound investment would create a lot of additional employment, with an estimate of 30 to 50 staff running the restaurant, breakfast bar, rooms and so on – plus the construction work will also boost local tradesman.

“Everyone employed would be predominantly local.

“We are working with a great team of architects and consultants and are looking to improve the gateway into the town, building something to shield the horrible-looking car park and Sixties office block.

“There is an aesthetic, really beautiful listed building in the form of the River Lodge and the riverfront and hopefully the project will complement it and the town.”

The pre-planning enquiry will establish whether planners favour the principle of a hotel on the site. A full planning application would follow.

Mr Afzalnia said: “We will obviously work closely with the planners. We want to make sure it is something they and the residents are happy with. I don’t want a big, contentious battle.”

Under the plans, the grade II-listed River Lodge building would be kept, with more modern extensions demolished and the hotel built between it and the Middleborough car park.

Mr Afzalnia said he hoped a more detailed planning application could be made in the autumn or winter.

The Elysium Group owns the Dirty Penguin, Qube, Bar 19 and Circle bars, and has recently opened Mimosa restaurant on Severalls Business Park.

The Humberts Hotel study, commissioned by Colchester Council in 2007, predicted the town’s hotels would become increasingly full and said more were needed.

A smaller, boutique hotel is on the way at former community college Grey Friars, as is a transformation of East Hill House, due to become a fine dining restaurant with rooms to let.

But a 90-bed hotel earmarked for Queen Street has yet to be built, while other hoteliers say occupancy rates have dropped since the Humberts report was published.