A busy city centre car park in Wolverhampton could be turned into a multi-storey as part of a £15 million Hilton hotel development, it was revealed today.

Plans are being drawn up to replace the run down Fox Hotel on the Penn Island with the hotel complex.

As part of the move, it has emerged talks will take place about making “better use” of the adjacent 81-space open air car park next to Wolverhampton Market, which is popular with shoppers.

Work is due to start on the nine-storey 130-room hotel development next spring after the Fox has been demolished.

It will transform one of the city’s main entrances, creating a new modern building. The 33-bed Fox Hotel has been on the site for more than 40 years.

Last year it was served with a prohibition notice by West Midlands Fire Service which banned it from having guests for a short time because of its inadequate fire alarm system.

The Hilton development has been hailed as the first phase of a major revamp of the city centre’s western quarter.

It will be marketed as a Hampton by Hilton hotel, offering affordable rooms.

Stephen Catchpole, chief executive of Wolverhampton Development Company, which has had an option to buy the Fox Hotel site since June 2008 and set up the deal, said today:

“The application that is being drawn up for the hotel does not include that car park.

“However there may well be discussions in the future with the council, which is our partner, about making better use of it.

“It would most likely be to remain as a car park use, but making better use of the land such as making it a multi-storey.”

Tim Clark, spokesman for Wolverhampton City Council which owns the car park, said: “It would be inappropriate for us to comment without seeing a clear proposal from the developers.”

Hampton by Hilton is a major brand of Hilton Worldwide that has 1,800 hotels in the US and is rolling out a UK chain.