The impact of the coronavirus pandemic on tourism has dashed hopes of building another hotel on Dundee's waterfront.
The Marriott group had designs on a £40 million leisure complex on Site 6, opposite V&A Dundee.
However, the pandemic has put paid to those plans after city chiefs concluded that demand was not strong enough for more tourist accommodation.
In its audited 2020/21 accounts, to be discussed by councillors on Monday January 10, Dundee City Council said: "In view of the global down-turn in tourism due to Covid-19, additional hotel capacity is not anticipated to be required in the short term, and a review of site 6 is being carried out to allow the remainder of the site to be developed.
"This will be explored in more detail in a future report to members."
Site 6 has been plagued by controversy since work first began on the Earl Grey Building - since rechristened after Agnes Husband, the Dundee suffragette and early female councillor.
The building was not popular with locals upon completion and Chrissie Hynde, singer in the Pretenders, blasted the block as a "monstrosity" during a gig in nearby Slessor Gardens.
It also failed to attract a tenant for months following its completion - eventually being signed over to Scotland's new social security agency, a deal that has created hundreds of jobs.
The immediate area is also heavily subscribed with hotels, from the budget Sleeperz hotel above Dundee railway station through to the Malmaison, Holiday Inn Express and Apex City Quay, all of which can be seen from the Waterfront.
Elsewhere, Covid has also delayed other big projects such as the planned merging of Braeview Academy and Craigie High, a hydrogen energy park on the city's northern edge and programmes designed to make council housing both safer and more energy efficient.
And since last April, Covid-19 has cost the city council over £27 million in day-to-day costs outside of big building projects.
Robert Emmott, executive director of corporate services, says the dent in the council's coffers is "significant".
The costs as of November include £3.9 million of additional teachers and support staff, over £1 million in PPE, £2 million in lost parking income and a £3 million gift to the city's leisure and culture body to keep it afloat.
Dundee has also paid out millions in both business support and hardship grants, funded by the Scottish Government.
Some of the costs will be met from the council's own rainy day funds, with other support coming from ministers to cover one-off unexpected costs related to the pandemic.
Marriott was contacted for comment.
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