London-based developer THAT Group has picked McAleer and Rushe to build two Hilton hotels at a site in Bournemouth.

Work has just started excavating the basement for the £60m hotel project, which will be built at Terrace Mount.

THAT Group plans to build two Hilton Hotels and 59 flats on the site – an iconic five-star hotel topped with a sky bar and a three-star hotel.

Ray Kelvin, founder of the Ted Baker clothing company,is a major backer of the scheme.

Property director Peter Tisdale confirmed the appointment of McAleer and Rushe, which was in a bid race with Galliford Try, John Sisk and Kier.

He said: “After many months of preparation, we have been able to make our long-awaited start.”

The scheme is expected to take around two years to complete.

Silcock Dawson & Partners are mechanical and electrical consultants on the project.