Former Devon hotel listed for auction with multi-flat potential

A former seafront hotel in Ilfracombe, which has stood semi-derelict for years, is set to undergo a partial transformation after being listed for auction.

The Devon Bay Hotel, which has been a prominent landmark in the town, closed its doors in 2020 following the liquidation of its trading company. 

Since then, it is understood the site has been the subject of various break-ins and anti-social behaviour, with locals frequently citing the deteriorating building as a significant "eyesore" on the seafront.

After years of complex legal issues, all of which have now been satisfied, the site is moving towards redevelopment.

Developers have worked closely with administrators to prepare the property for sale.

The auction, managed by joint agents Douglas & Dean and 247propertyauctions.co.uk, focuses on a section of the site located at 3 Fortescue Road.

The four-storey, mid-terraced property has been granted planning permission (application number 80477) as of 24 October 2025 for conversion into four self-contained flats. 

The plans include the demolition of an existing link building.

According to the auction listing, the site offers strong potential for developers, with the finished units expected to appeal to the buoyant demand for smaller residential housing in the North Devon coastal town.

Proposed accommodation includes:

Lower ground floor: A two-bedroom flat with a 'Jack and Jill' en-suite.

Ground, first, and second floors: One-bedroom flats on each level, all featuring en-suite bathrooms.

The property is being offered as a freehold with vacant possession and carries a guide price of £95,000.

Jon Bingham, of Gemini Projects, expressed optimism that the auction will attract local interest. “I am hoping that a local builder or developer will buy it, thus directly benefiting the local economy,” he told the Gazette.

While the Fortescue Road portion is headed to auction, the remainder of the former hotel complex remains available for purchase. 

Agents have stated that the rest of the building could be suitable for a variety of uses, including further residential conversion, subject to obtaining the necessary planning consents.

Interested parties are advised to contact Douglas & Dean in Ilfracombe for further information regarding the wider site.