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Work begins today on the £20m Shankly Hotel after operator Signature Living Developments concluded the acquisition of Millennium House from Liverpool City Council.

Signature will convert the former council offices on Victoria Street into a luxury 83-bedroom football-themed hotel in honour of the legendary Liverpool FC manager Bill Shankly.

The development, which will create more than 200 full and part-time jobs, is a joint venture between Signature Living and the surviving Shankly family.

It will include a museum dedicated to the football icon, which will contain never-before-seen family memorabilia covering his glittering reign at Anfield.

Signature Living says the museum will represent a permanent tribute to the life of Bill Shankly and expects it to become a football heritage destination for people from all over the world.

A bar and a sports-themed restaurant are also planned for the venue, which is scheduled to open in time for the new Premiership football season in August.

The multi-million pound purchase included an agreement for a seven-figure renovation of the Lifestyles gym within the building.

In addition to the hotel and museum, there are plans for a training school on the site that will support people wanting to go into the leisure and hospitality industries. The company has already started work with local colleges on the venture.

Company owner Lawrence Kenwright said: “Signature Living is about to radically transform this landmark city centre building into a truly international hotel and tourist destination. It will be more than a luxury accommodation; this has the potential to become a tourist attraction in its own right.

“Having spent many hours with the Shankly family I have come to realise just how amazing Bill Shankly as a manager was. There is a great story behind the legend and I believe the team at Signature Living are perfectly placed to deliver it.

“This won’t just be a hotel for fans of Liverpool football club because Bill Shankly is a name that is respected by fans of sport the world over. He is an icon in the world of football. His fantastic story will be told at the Shankly Hotel to give guests a sense of his greatest achievements.

“The Shankly Hotel development will also further regenerate a key part of Liverpool city centre and create hundreds of local jobs.”

Bill Shankly’s grandson, Chris Shankly-Carline, said: “The Shankly family is really proud to be working with Signature Living to make the Shankly Hotel a reality.

“It will be the ultimate tribute to my grandfather.

“We’re hoping to create an unforgettable experience for visitors to the hotel and have identified some truly unique, unseen pieces of memorabilia from within the family collection to display.

“It might surprise some that it will not be all about his time at Liverpool Football Club. The hotel will feature his time at Carlisle United, Preston North End and even the special relationship he had with Everton.”

The Shankly Hotel is Signature Living’s latest high profile development after opening the 30 James Street Hotel last year following restoration of the building that was once the headquarters of the Titanic’s White Star Line.

The Shankly Hotel will also include a new base for Signature Living to support its planned UK expansion.