Dublin city is to get another five-star hotel aimed at the top end of the business market. Planning permission has been granted for the 61-bedroom hotel which will be based on La Stampa restaurant and an adjoining building opposite the Mansion House, in Dawson Street. The hotel is due to open for business next March.

Businessman Louis Murray has just paid £7.4 million for the two buildings - £4.2 million for La Stampa, which was rented at £90,000 per annum from the Co Westmeath-based property developer Christopher Bennett, and £3.2 million for number 36 Dawson Street, which was owned by Irish Life and partially occupied by All Risks Insurance. Mr Murray will be spending a further £6 million on redeveloping the building, which will be enlarged from 30,000 to 50,000 sq ft. The frontages of both buildings are listed for preservation and there is a rear access from Anne's Lane.

Mr Murray took over the 200-seater La Stampa restaurant in 1991, a venue noted for its large Victorian hall to the rear which was built as an engineers' hall. It was ideal for conversion into a stylish bistro-type restaurant. Number 36 has an equally large hall at the rear with a floor area of 6,500 sq ft and a 35 ft high ceiling. The building was occupied for many years by the wine wholesalers and retailers, the House of Morgan. The hall, which is larger than the Cafe en Seine, will be converted into a stylish bar with a mezzanine restaurant. La Stampa will continue as a restaurant and a third restaurant will be located in the basement of number 36. The overall extension and conversion of the two buildings is being handled by 3D architects, while the interior design will be the responsibility of the Paris-based expert Miguel Candio who was responsible for fitting out some of the best bars in Paris, including Buda Bar Manray and Fly Bar. He will be assisted by Sarah Murray, a daughter of the owner. Mr Murray said while it was possible the Dublin hotel market was overcrowded, he believed there was room for a high-quality, well-run hotel. "There is no room for an investment-driven hotel, you must run it yourself and provide the best service and food."

The Dawson Street hotel will be the latest boutique-style hotel in the city. Around the corner on St Stephen's Green, the first boutique hotel and restaurant, Brownes, has set the trend since it was opened last year by businessman Barry Canny. Dublin is to get two other five-star hotels next year when the huge Four Seasons hotel opens at the RDS in Ballsbridge and Treasury Holdings launch the Westin Hotel at College Street, opposite Trinity College.

Michael Donohoe, of Colliers Jackson-Stops, advised Mr Murray on the purchase of the two buildings. Conor Keaveney of Palmer McCormack acted for Mr Bennett.