A developer has decided not to go ahead with plans to turn a Grade II listed building into a boutique hotel and will now look to sell the property.
Agellus Hotels revealed this week that it was no longer looking to convert 4 St Mary’s Place, Stamfod, into a nine-bedroom hotel and 66-seat restaurant.
The hotel plan was the subject of an appeal after an initial application was refused permission in October 2009.
Agellus lost the appeal but South Kesteven District Council had to pay costs for failing to provide detailed justification for refusal.
The firm was eventually granted permission to change the use of the building in May 2011 but almost two years later has decided not to go ahead with the work.
Operations director Rufus Harper said: “Despite having received planning consent our company strategy has changed slightly and St Mary’s is currently on the market
“We have decided not to convert this and add it to the Agellus Hotels portfolio.”
The company owns four hotels including Oundle Mill.
Neighbours to the building in St Mary’s Place opposed plans to turn it into a hotel from the beginning.
One neighbour, Liz Heesom, said: “We had a lot of objections to the effect on residents’ amenity.
“There was also very great concern about the use of a Grade II listed building.
“If we hadn’t stood up as residents there would be a hotel, bar and restaurant there now and that building would be utterly denatured.”
The building is on the market with Colliers International. The firm is considering offers in the region of £1m.