The Scottish Exhibition and Conference Centre in Glasgow has launched its finance-raising "Plan B" after failing to secure the UK's first supercasino.

Management is pursuing a four or five-star hotel and office accommodation scheme and has selected Edinburgh-based Macdonald Estates as preferred developer.

The cash raised would help to fund the £66m, 12,500- seat Scottish National Arena, which is pivotal to Glasgow's 2014 Commonwealth Games Bid and the SECC's Queen's Dock Two project.

QD2 includes 1560 homes with a "village centre" and boulevard, neighbourhood shops, nursery school and supermarket, healthcare facilities, a bar, cafe and restaurant.

Macdonald has also been selected to build a 1500-space car park to replace parking that will be lost with the construction of the new arena. Work on the multi-storey would begin next year.

The hotel, car park and office space scheme is still subject to planning approval but could be completed by 2011.

The SECC has moved quickly to find a replacement project after South African gaming giant Kerzner pulled out of its plans after Manchester secured the supercasino. The development's design does not preclude construction of a casino later.

Last week, it was revealed the SECC generates almost £340m for the local economy, £196m of which trickles beyond Glasgow. A further £130m-plus could be generated by the new arena.