United Bank division UB Community Development (UBCD) has finalised a $10.5m New Markets Tax Credit (NMTC) allocation to fund the Andalusian Boutique Hotel project in Alabama, US.

The investment will rejuvenate the historic Timmerman Building, originally constructed in 1920 and designed by architect Frank Lockwood.

Formerly the First National Bank Building, the Beaux-Arts styled property will be transformed into a 58-room boutique hotel, which will join the Ascend Collection by Choice Hotels International upon completion.

UBCD is collaborating with Jason Wood of Wood Development for the project.

This project's scope extends to the Andala Building, adjacent to the property, where the upper floors will be repurposed into additional hotel rooms, accessible from the main lobby via connector ramps.

Andala currently houses Big Mike's Steak House.

UB Community Development president Alex Jones said: "Our track record of supporting adaptive reuse of historic buildings speaks volumes for UBCD's commitment to community development, and this project in Andalusia continues this focus. 

"We sincerely appreciate Jason Wood's and the city's confidence in UBCD to help them bring this project to fruition."

The renovation is a crucial element of the larger downtown revitalisation strategy of Andalusia, which has attracted support from both local officials and the community.

In addition, the hotel has partnered with Lurleen B Wallace Community College to create a workforce training programme to bolster workforce development. This aims to generate approximately 28 full-time jobs in the hospitality industry, providing opportunities for local residents and students.