Plans have been submitted to Brighton & Hove City Council to convert the Preston Park Hotel on the outskirts of the city into 25 flats.
The 34-bed hotel, which dates back to 1874, is currently trading with annual losses of over £100,000 and is struggling to compete with cheaper budget chains nearby and in the city centre. Competition is keeping room rates static while other costs continue to rise.
The redevelopment, which is expected to take up to two years, would see the oldest part of the hotel converted into 16 flats while an extension will be demolished and replaced with a new building for nine affordable flats.
Applicants said the hotel redevelopment will improve the appearance of the building to the benefit of the Preston Park Conservation Area and neighbouring residents will benefit from a reduction in traffic to the site.
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