Aberdeen City Council (ACC) has agreed to examine alternative options for the development of a new hotel at the Aberdeen Exhibition and Conference Centre (AECC).

Previous plans for the new four-star property at the conference venue were deemed to be too risky amid the current economic climate, with the council now set to explore new ways of progressing the scheme. ACC leader John Stewart said: "All of the professional advice we have received shows that a four-star hotel would boost AECC business and bring significant economic returns to the city.

"The venue already contributes almost £80m a year to Aberdeen city and shire - far outstripping the financial support it receives, which is far less that the investment of public funds enjoyed by the conference centres in Edinburgh and Glasgow." Meanwhile, the council has also agreed that the value of land adjacent to the AECC should be used for redevelopment in partnership with the private sector to help reduce the venue's debt burden.

In February, ACC gave the venue more time to repay a £7.5m loan as part of a new package to help secure its future. AECC now has until 2017 to pay back the amount it owes to the council.