Reading is to be home to a new full-service Hilton hotel. An agreement has been signed with developer PRUPIM, part of Prudential's property arm, and construction will commence in November with an opening planned for 2008.

Howard Friedman, Hilton's area president for the UK and Ireland, said, "Reading is an important business centre in South East England and we look forward to being part of this thriving business community".

"The signing of the agreement marks another significant step forward for Hilton's development throughout the UK and Ireland, and we are delighted to be working with quality project partners such as PRUPIM".

The hotel, which will feature 198 guest rooms, meeting rooms, a ballroom and a LivingWell health club with pool, will be part of Reading Southside, a sustainable mixed-use scheme to be developed on 110 acres of land close to the Madejski Stadium and the M4.

PRUPIM's Stephen Tully said the signing of the agreement represents an exciting milestone. Hotel investment is new for PRUPIM but it is a sector we intend targeting further. Reading is short of the kind of facilities that Hilton can provide and Southside is the ideal location for a new hotel."

The agreement between Hilton and PRUPIM follows the recent news that the Government has approved funding for major works to improve Junction 11 of the M4 Reading's most important road gateway. In the same week the Department for Transport gave the go-ahead for a railway station at neighbouring GreenPark.

"This is excellent news that will make the area even more attractive to business occupiers, residents and hotel guests," added Tully.

The plan to regenerate this part of Reading began a decade ago with the relocation of the football stadium. A further element was added more recently with the building of the award-winning new water treatment works.

The commercial element of Southside is being developed by Foudry Properties, a joint venture between PRUPIM and Thames Water, and a planning application for the overall scheme is expected to go to Reading Borough Council's planning committee in the autumn. The residential element is being developed by St James Homes, which is proceeding well with the first phase of houses (known as Kennet Island) already sold and almost ready for occupation.

Hilton Hotels Corporation is the world's leading hospitality company, with nearly 2,900 hotels and more than 485,000 rooms in over 80 countries. The company owns, manages or franchises a hotel portfolio of some of the best known and highly regarded brands, including Hilton, Conrad, Coral by Hilton, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, Scandic and the Waldorf-Astoria Collection.