Soestdijk palace, lived in by queen Juliana and prince Bernhard for over 60 years until their deaths in 2004 is to be turned into a hotel complex with exhibition space.

The palace began life as a 17th century hunting lodge but was enlarged considerably over time and has been empty for the past 13 years.

The winning project Made in Holland is paying the Dutch state €1.7m for the estate, which also includes other buildings and extensive grounds. Three projects were shortlisted but this was the highest bid.

The top floor of the building will be turned into a hotel with 14 rooms, while the ground floor will be devoted to exhibitions highlighting Dutch enterprise and innovation, such as in the fields of architecture, agriculture, the environment and water.

The plan also includes demolishing the former police barracks and replacing them with some 65 houses. The stables will be converted into a hospitality centre and other hotel facilities will also be built in the grounds. The work will take 10 to 15 years to complete.