Macdonald Hotels and Resorts is to open a new 120-room hotel in Windsor, Berkshire.

The contemporary townhouse style hotel will be built on the site of the former Caley's department store, what was the smallest of the John Lewis Partnership shops and one of the oldest. It closed in 2006. Several of the buildings which the store occupied in the town's High Street were listed properties and part of the new hotel will sit within the listed section and retain some of its features. The store boasted wrought iron balconies; an Elizabethan staircase, subject to a preservation order; two medieval wells and - according to the official John Lewis history - at least two ghosts.

Scheduled to open in August this year, the new hotel will join Macdonald's existing portfolio of around 50 hotels and resorts across the UK and Spain.