A derelict hotel that was ‘haemorrhaging money’ could be given a new life if developers get the go ahead on an extensive resurrection plan.
The Royal Hotel in Ashby closed in March unexpectedly, but could now reopen if enough money is raised from the proposed constructions of new surrounding developments to fund its restoration.
Oakland Hotels Limited submitted a plan for public review last week that would see a number of homes, apartments and a retirement village built on land around the hotel in Station Road.
The new expansion would then help to fund the work required to reopen the hotel, which is estimated will cost between £3.8m and £4m.
Developers are bidding to create 35 apartments, 44 retirement flats and a new café, plus five family homes which would be built on part of the old Bath Grounds.
Both sites are owned by Oakland Hotels Limited.
Speaking to Derbyshire Live, Anthony Calvert, managing director at Calvert Communications which unveiled details on the proposed scheme on behalf of the developers, said: “We want to put in a planning application that will enable the refurbishment and the renovation of the Royal Hotel in Ashby.
“We’re very keen that it is reopened as soon as possible. It’s obviously a landmark and heritage asset to this town. It closed down earlier this year because it was unsustainable; it was hemorrhaging money.”
The 34-bedroom hotel has been a landmark in the town since the early 19th century. It closed and was boarded up in March after the management decided the business was no longer viable, having traded at a loss for three years.