A Montreal developer will build a 16-storey hotel on the site of the old Ben's Deli on de Maisonneuve, says an official with the downtown Ville-Marie borough.

The borough gave a construction permit to the developer on Wednesday, said the official.

Work on the hotel has already begun and when it's completed there will be 122 rooms and interior parking for 42 cars.

The old Ben's building will be completely demolished, despite calls from heritage groups to preserve the structure.

Ben's Deli, a Montreal institution for decades, shut down in 2006 during a lengthy labour dispute.

Landmark

Its 1940s art-deco style made it a landmark, as did the celebrities who ate there and whose pictures adorned its walls.

But last June, after months of debate, the Ville-Marie borough decided it was time to demolish the building.  A committee concluded the structure was of sentimental, but not architectural value.

All won't be lost, however -- the McCord museum collected all of the photographs of stars that had lined the walls of the restaurant.  The photos, along with other memorabilia, were to be used in an exhibit.