‘Boom town’ flats as apartment-style hotel could be built on site of derelict pub

Bowles Hotels bought the Royal Hotel site in Loftus, off the A174 on the eastern edge of the town, for £75,000 after it was recently auctioned off.

Redcar and Cleveland Council previously granted planning permission for supported living accommodation on the pub and car park site comprising 16 flats which were intended to house vulnerable adults.

But the plans, approved in January last year by councillors despite objections, failed to progress with the company behind them, Mersten Limited, later going into administration.

Jamey Bowles, chief executive officer at Bowles Hotels, said Loftus was a “booming town” and going through an “exciting transformation”.

Mr Bowles, who is the founder of Redcar-based Your Home Group, referenced the more than £11m in public funding being spent on regeneration schemes in Loftus.

This includes £5.8m previously secured from the Government’s Future High Streets Fund, £4.75m of indigenous growth funding from the Tees Valley Combined Authority and £1m from the council.

He said: “With [this money] committed to transform Loftus into a contemporary market town, I am delighted to be able to help by developing this derelict site.

“Hotels are not only needed to accommodate tourists to the area, but also support corporates who are relocating to Teesside.

“We will be starting renovations in January and are working towards opening in August 2024.”

Bowles Hotels is behind a luxury apartment-style hotel slated to open shortly in West Terrace, Redcar, which promises high end, secure, short-term accommodation, and it is understood what could be delivered on the Royal Hotel site would be a similar ‘aparthotel’ complex.

A masterplan previously adopted for Loftus highlighted the need for more quality accommodation and to improve key gateways in and out of the town.

The Royal Hotel site occupies a prominent position on rising land and is passed by countless motorists each day using the A174 which links Teesside with North Yorkshire.

Loftus ward councillor Tim Gray, who owns a bar and holiday let in the area, said: “Anything that can go on that site I would welcome and I would much prefer something that will enhance the tourist economy what with the high street regeneration going on in the town, new car parks, places to stay.

“I am feeling optimistic that something is going to get done with the place.

“Just down the road you have Staithes, Runswick, Whitby, all them beautiful tourist places and we need to drag some of that tourist dollar into Redcar and Cleveland.

“A lot of people fail to realise that in Redcar and Cleveland there are only two true market towns, one is Guisborough and the other is Loftus.”