The former West Bar police station in Sheffield is to undergo a £9m refurbishment to be transformed into a 142-bedroom hotel bringing regeneration and job creation to the area.

The five-storey building has been sold by South Yorkshire Police (SYP) for £2.5 million in a deal overseen by agents Knight Frank and solicitors Irwin Mitchell.

Now the building, which opened in the 1960s and served the city's police force until last year, is to undergo the transformation following the signing of a franchise agreement between Hilton Worldwide and Sanguine Hospitality, who own and operate a growing portfolio of hotels across the U.K.  

Sanguine will carry out a 12-month refurbishment programme in a development expected to create more than 55 full and part-time jobs in the area. The hotel is expected to open in Spring 2013.

The Hampton by Hilton hotel will have a range of contemporary features including free high-speed internet access throughout, free hot breakfast, a 24-hour snack area featuring light dishes, and a full bar.

Knight Frank partner Peter Whiteley said: "This area of Sheffield has undergone numerous redevelopments in recent years including the Metis mixed use building on the junction of Scotland Street and West Bar Green. This sale and the subsequent refurbishment is another significant development adjacent to the new ring road link, bringing further regeneration to the area, as well as jobs."

Martyn Holland, a consultant in the Real Estate team at Irwin Mitchell, advised South Yorkshire Police Authority on the deal.

Mr Holland said: "This completion marks another important step in the development of one of Sheffield's highest profile buildings. I'm delighted to have been involved in the deal and particularly pleased that now the sale has completed, the hotel's development can move forward and play what will be an important role in the continued regeneration of this part of the city."

Simon Matthews-Williams, chairman of hotel management and development company Sanguine Hospitality, said: "We are delighted to be able to restore the building to become the Hampton by Hilton Sheffield and to ensure it continues to tower over the city's skyline as a quality hotel that will welcome many of the city's tourists and visitors." 

South Yorkshire Police purchased Carbrook House as its new Force headquarters last year in another deal brokered by Knight Frank and advised on by Irwin Mitchell. Funds from the sale of West Bar and other out-of-date SYP properties will contribute towards the costs of buying and refurbishing Carbrook House.

Sanguine's relationship with Hilton Worldwide has already seen the opening of full-service DoubleTree by Hilton hotels in Chester and Bristol, as well as the recently opened Hampton by Hilton Birmingham Broad Street. In addition, the Hampton by Hilton Exeter is currently under development.