Ideas are being drawn up for phase two of the Cambrian Road development scheme in the centre of Newport with a hotel, office block or student accommodation possibly being part of it.

Phase one of the scheme, which is being developed by Scarborough, is the site of the new Admiral building opposite Newport's railway station in Queensway. Phase one also includes a number of retail units, which are currently being marketed as The Station Quarter. Business Argus understands that one of the units has been let to a gym.

According to the architects for the scheme, Holder Mathias, Scarborough are now keen to get phase two under way.

Wilco Stekkinger, of Holder Mathias, who worked on the Admiral building which was officially opened last month, told Business Argus: "Scarborough is keen to get moving on phase two of this project, which will include the corner of Queensway and Cambrian Road and along the front of the former Cambrian Centre.

"We are looking at everything from student residential, to a hotel or more offices."

He said his firm had been asked to come up with a variety of ideas for the site, which would then be shown to potential customers to see what sort of building they would want to invest in.

Mr Stekkinger said: "It is very much dependent on the market but there is an appetite for something to be done. Of course, it has to be the right project for Scarborough and for Newport.

"We have set the precedent with the Admiral building on Queensway. We need to follow that and the planners would be keen for that to happen.

The site on the corner of Queensway and Cambrian Road is more sensitive because it is next to the city centre conservation area."

Mr Stekkinger said he was pleased with the local reaction to the Admiral building, which currently houses about 500 staff but which has capacity for about 1,200.

"People are pleased with it and hopefully the staff like it," he said.

Holder Mathias have had a long association with the Cambrian Road site, having worked on the previous City Spires scheme, which foundered after the developer ceased trading.

Mr Stekkinger said Admiral were keen to move to the site event under the previous scheme.

The architects have been involved in other schemes in the Gwent area including the new bus station outside the market in the centre of Newport.

They are currently involved in the refurbishment of St Joseph's Hospital in Malpas, a site they have worked on for at least 10 years, and they were the architects for the redevelopment of Cwmbran Shopping about 10 years ago.