YTL Hotels, the hospitality division of Malaysia-based YTL Corporation Berhad, has said it plans to transform a historic Bath property into a new 98-bedroom spa hotel.

Housed in the vacant Gainsborough Hotel building on Beau Street, the planned new hotel is to become one of the first in the UK to use natural thermal water when it opens in 2014.

It is hoped that the conversion of the property will start in early spring 2012, although initial development work has already been undertaken by Bath Hotel and Spa Limited (BHSL).

YTL Hotels will now take over the development of the spa hotel, although BHSL joint owner Trevor Osborne will continue to advise on the project as it moves forward.

Meanwhile, work has commenced on the drilling of a new borehole in order to source water from Bath's hot springs, which will also be used at the Roman Baths and Thermae Bath Spa.

YTL Hotels executive director Mark Yeoh said: "During their stay at the hotel guests will be able to enjoy the thermal waters below Bath - it will be a unique experience and one that isn't offered anywhere else in the country."

Paul Crossley, leader of Bath and North East Somerset Council, added: "The new hotel complex will add to the attractions of our World Heritage City making use of the natural thermal waters."