A stg£16 million expansion to an upmarket city centre hotel in Belfast is set to create an additional 80 jobs.

The Northern Ireland based Beannchor group which owns the five star Merchant Hotel in the Cathedral Quarter, said despite the economic downturn it has plans for growth.

Owner Bill Wolsey described the project as 'a labour of love'. He said the group is looking at enlarging a second hotel in central Belfast on Skipper Street.