The George Hotel needs demolishing. It is far too big for the office requirements of the TVA and would need a fortune spending on it to bring it up to standard. At that point there would be a huge rates bill to pay too so presumably building the new office onto the end of the terminal and wrapping the work into the Skybar/viewing area development delivers cost synergies across both projects?
If the airport can get back to 300-400k pax a year, then maybe the hotel site would be interesting for redevelopment but at that point a Premier Inn type chain would just flatten it and built a new hotel in line with their requirements.