New North Devon Premier Inn plan scrapped as site goes up for sale
The proposed Ilfracombe Premier Inn has been officially scrapped as the development site is put up for sale
Long-running plans for an 81-bed Premier Inn on Ilfracombe seafront have been officially shelved with the site now up for sale.
The cleared site in Market Street is now up for sale, with owner Whitbread saying the proposed hotel was ‘no longer viable’ for its business.
The leisure and hospitality giant cited financial costs, external pressures and a much-changed business environment which have affected the viability of developing new hotels.
The site is now being marketed for sale by Exeter-based Jones Lang LaSalle and still has planning permission for a five-storey 81-bedroom hotel, including a reception lobby, bar and restaurant.
But the sales particulars suggest the land may also be developed for housing or perhaps a care home and say there is a need for both in Ilfracombe.
Whitbread bought the site in 2020 and was given planning permission for a new Premier Inn in 2021.
The ‘will it, won’t it’ saga has been a talking point in the town for many years, with opponents often pointing to the total lack of car parking in the plans and suggesting nearby car parks would not cope.
The buildings on the site were demolished and fences put up, but no further development work has taken place for several years.
It was once home to the old Alexandra Theatre building, which saw a range of uses over the years including as the former Colossus night club, with DJ’s Sports Bar on the end at the top of Market Street.
In a statement provided to the North Devon Gazette, which was also sent to selected local parties including Ilfracombe Town Council, Whitbread said: “The business environment in which we operate has changed significantly since we bought the land in 2020.
“Construction costs have risen across the development sector and external cost pressures – including recent increases to business rates for hotels – have impacted the financial viability new hotel developments.
“Considering these factors, we have concluded that the proposed hotel at Market Street is no longer viable for Whitbread. We will therefore be marketing the site this summer.”
The company, which is also looking to close its Brewers Fayre restaurants in Bideford and Table Table in Barnstaple, said it had originally bought the Ilfracombe location because it recognised the potential for a Premier Inn in the town.
It said while it had recognised the hilly location would pose some challenges, it had believed it would be a popular choice for leisure and business guests.
Whitbread added: “Since then, we have worked closely with planning and economic development officers at North Devon Council and many other stakeholders, to design a Premier Inn that met our operational requirements and was economically viable to build.
“This included securing planning permission twice and engaging extensively with local and national building contractors to find a suitable construction partner.
“This has not been an easy decision to make. But as a publicly listed business, we must ensure that new developments meet our investment thresholds and regrettably this is no longer the case for a proposed Premier Inn at Market Street in Ilfracombe.”