Michelin Star-rated restaurant Peacock Alley will be one of the key features of the new £17 million flagship development by the Fitzwilliam Hotel Group. Mr Conrad Gallagher's restaurant is moving from its current site to the new 135-bedroom five-star hotel on Dublin's St Stephen's Green.

The Fitzwilliam hotel, expected to be open by the beginning of June, is being built at an average room cost of £126,000.

The group's chief executive, Mr Michael Holland, says it will cater for the luxury trade which he maintains is under-serviced.

The link between Fitzwilliam and Peacock Alley follows the example set in September by Mr Patrick Guilbaud who re-located his business the country's only two-star Michelin Guide restaurant to the Merrion Hotel in Dublin.

Mr Gallagher's Michelin Guide one-star restaurant is moving from nearby South William Street to the Fitzwilliam Hotel where it will operate in an open plan setting where up to 120 customers will be able to see their meals being prepared.

An 80-seat brasserie-style restaurant will also be run by Mr Gallagher.