The Imperial Hotel, on West Clyde Street, will be transformed into a ‘boutique hotel’, creating a number of local jobs. Politicians and community figures have praised the economic investment and claimed the development will fill a need for accommodation in the Burgh.

The chamber of commerce added that businesses will benefit from increased footfall.

The town was brought a further boost this week when Fiona Hyslop, Cabinet Secretary for Culture, officially opened The Tower Arts Centre and Digital Academy.

As the Advertiser went to print, Ms Hyslop was due to visit Helensburgh to open the centre, which aims to showcase prestigious cultural events from around the world.

There had been local speculation the popular ‘Imps’ was due to be redeveloped for housing - most likely a block of flats, with the possibility of a restaurant on the ground floor - however, Peter Seymour from selling agent Seymour and Clink said that was ‘nothing more than a rumour’.

The 19th century building has been empty for more than a year. It closed in January last year, following a refurbishment in June 2013.

The West Clyde Street business – a leasehold – had been listed for sale on several websites at £35,000 rent per annum.

An advert claimed the three-storey property had been in the hands of the former owner since 2000, and cited ‘other business interests’ as the reason for sale.

Peter Seymour, from the Stirling-based commercial property agents, told the Advertiser the hotel was not being developed for housing, despite ‘rumours around the town’.

He said: “It’s a national group, a budget hotel chain, which has bought it. Work will start on Monday. It is being turned into a boutique hotel - I don’t have information about an opening date yet, but it will be a hotel, it is not being turned into flats.” The selling note said the hotel ‘requires refurbishment in most areas’.

He said the purchase was made by Six Bells Enterprises Glasgow Ltd, who bought the property from Hawthorne Ltd.

Mr Seymour said he expected jobs would be created, although he did not have any information about the number of posts.

A spokeswoman for the Helensburgh and Lomond Chamber of Commerce said the development would likely boost footfall. She added: “We have not had anything like this in Helensburgh for a while, I think this is something we are badly needing. Anything that will increase the employment is also a real bonus.” Councillor Gary Mulvaney, chairman of Helensburgh and Lomond’s area committee, said: “It is quite an iconic building in the town, it’s got a long history in the hotel. I think a boutique hotel would enhance Helensburgh, it’s something the town does not have just now, and I think we’ve got to warmly welcome it.

“I think the investment in terms of the premises is wonderful, the additional jobs that will be generated will be welcomed for the community.” Councillor James Robb added: “It is always good to see empty buildings being brought into use in the town particularly in such prominent positions.

“The owner has identified a niche market for a boutique hotel in Helensburgh which I hope proves to be successful.” Councillor Vivien Dance welcomed the news that work was starting on Monday. She added: “I’m pleased to hear about it. We do need more accommodation in Helensburgh, we’ve had a number of B&Bs and hotels give up over the years. Speaking to colleagues in the tourism industry, the more rooms for people the better.” Stewart Noble, a local historian, said he hoped the new owners would keep the existing style of the hotel. He said: “It is a historic building, so it’s nice to see it having a new use.

“I think it is an attractive feature of that part of Clyde Street, I would hope the new owner would continue with that style. It’s nice to see it coming back into use again.” Jackie Baillie, Helensburgh and Lomond’s MSP, said: “I think this is fantastic news for the town, the fact that somebody wants to invest in a boutique town is good news for the town and for local jobs.”