It will add 12 luxury suites to the top floor of the 146-room hotel. The property has nine events spaces, catering for between 2 and 450 delegates. Around £70,000 of the £500,000 earmarked for expansion has been provided by Invest NI.
The project is expected to be completed by the end of this year. Londonderry has been named the UK City of Culture 2013.