COLCHESTER town centre is set for a £30million overhaul, it can be revealed.

The plans will see the former Keddies building demolished to make way for an 87-bed hotel, while seven large restaurants and bars will be built.

In addition, 230 student homes are planned for the area, alongside a public boulevard which will link Queen Street to Firstsite.

The three-acre site, which is north of the Priory Street wall, includes the former bus station, part of the former bus depot and the land where the Waiting Room was situated.

It is still owned by Colchester Council but it has chosen Norwich-based developer Building Partnerships to develop the site.

Bosses hope the development - which does not include Roman House, where Curzon will open next year - will be completed in 2018.

Tim Young, Colchester Council’s regeneration boss, said the development “would put Colchester in the Premier League of destinations”.

He added: “We are finally at a point where things are getting moving.

“The whole development looks absolutely amazing and will completely transform this part of the town.

“It will bring people into the town and of course, it will be very good for Queen Street.”

A council-funded creative business centre is set to open in the former police station, near the site.

Mr Young added: “It’s fair to say we are not hanging about.

“We recognise the importance of this - people want to see results and we want to give them that.

“With Colchester improving so fast, we want this part of town to be thriving as quickly as possible.”

It is hoped plans will be submitted by developers early next year at the latest.

In council documents seen by The Gazette, it states: “The council has been looking at demolition costs for St James’ House [to] both save unnecessary costs and working alongside the programme for the cinema.”

On the Building Partnerships’ website, which advertises the site in its portfolio, it states the development will “raise the profile and create a food and beverage led quarter in Colchester town centre”.

It adds: “Building Partnerships won a formal competition with Colchester Borough Council and were selected to develop out a leisure led scheme.

“Design is ongoing with the brief to provide circa 12,100sq m of mixed use development including an 87-bed hotel, 230 student residences and seven large food and restaurant units at ground floor level. A new and attractive public realm will provide linkages to the iconic Firstsite art gallery and adjacent town centre retail areas.”

It is understood while it has been confirmed the popular Waiting Room will not be able to return to its bus station home, a “suitable” space will be found in the town for it.