A LANDMARK city centre pub which has been closed for more than two years is set to reopen.

The Palace Hotel in Old Market – better known as the Gin Palace – was under threat of being turned into offices.

But two weeks ago Gareth Taylor and John King bought the lease on the historic watering hole, and now plan to have it up and running as a pub in three weeks.

The pair, who also own the Bristol Bear Bar across the road, will run the pub as a gay-friendly bar, and say that the only way the Gin Palace could reopen was by appealing to the gay community.

Mr Taylor, 39, the landlord, said: "We knew no one was interested in buying it, and it was not commercially viable to run it as a normal community pub.

"The city council earmarked Old Market as a gay village a long time ago, but very little was done about it. Yet from the bottom of Old Market Street to Gloucester Street every venue is either gay-owned or gay-run.

"We have to take the bar forward, and for that to happen there is no other choice than for it to become part of the gay village."

But the new owners are keen to emphasise that the reopened Gin Palace will be open to everyone, not just gay people.

Mr Taylor said: "No one is excluded, gay or straight – it will be all about having a good time in a safe environment and everyone will be welcome. The other day one of the old barmaids came in and asked if women would be welcome. We are hoping to bring her back as one of the staff."

Decorating at the Gin Palace is now well under way, and the new lease-holders are working hard to maintain the pub's original features.

The ceiling has been painted red, the cornices – previously blue – are now bright gold, and the brass barley-twist columns that support the bar back have been polished.

The theme for the pub is a regal one, and there are chandeliers and red and gold curtains from a stately home in Scotland for the windows.

The famous sloping floor will remain intact, and the snug to the left of the bar will become a cosy room with couches. And although there will be no real ale on tap or any food, beer lovers can still tuck into ale from the bottle.

Once the Gin Palace is open, Mr Taylor and Mr King will turn to their next project, a cabaret bar called The Ruby Slipper, which they hope to launch in 12 months on the site of the old locksmiths, P Thorne. Mr Taylor said: "It'll have a 500-head capacity and will be like a diner theatre, targeting hen and stag parties."

Richard Brooks, chairman of the Bristol and District branch of CAMRA, the campaign for real ale, was delighted that the Gin Palace has been saved from developers. He said: "It's very good news that it's going to be a pub again, and we hope they can make a go of it.

"It's great to hear they intend to maintain the original features. As CAMRA members we're obviously champions of real ale, but that's not the point here. The real issue is that it's been saved from becoming an estate agents or a block of flats, and we wish them every success."

The Gin Palace is due to open on Friday, December 12.