Dublin is on track for a new Maldron hotel after the Dalata hotel group said it had bought a development site on Kevin Street for €8.1 million.

The hotel operator said construction of the hotel was expected to begin later this year, with the group aiming to have the new hotel open by mid-2018. Planing permission has already been granted for a hotel at the site, which will include a basement car park, café/bar and restaurant and 137 bedrooms over five floors.

The development is expected to cost €26 million and employ 70 people once operational.

"The purchase of this property is a very exciting opportunity for the company and is consistent with our stated strategy of securing development sites for further new hotels in Dublin," said deputy chief executive Dermot Crowley. "The Dublin hotel market continues to perform very strongly in 2016, and we look forward to this Maldron Hotel contributing significantly to the company performance in the future."