PLANNING officers have recommended a Redcar hotel is knocked down and replaced with flats, despite concerns about the effect it could have on tourism.

An application has been made to turn the Regency Hotel, in Coatham Road, into 42 self-contained apartments.

The hotel is the largest in the town, with 49 bedrooms, function rooms, conference suites and a nightclub.

Redcar and Cleveland Council planning committee discussed the development yesterday, with planning officers recommending the plans be approved. Members decided to arrange a site visit before making a decision.

Local councillor Josie Crawford said: "We don't have many decent places in Redcar for tourists to stay and the hotel is also used for conferences and for reps to stay and for wedding receptions and parties. We need more places for them to stay, not less. I think a lot of residents would be sorry to see it go because it is a nice place to go for a meal or a drink."

The scheme would involve demolishing the existing hotel and building two new blocks of flats.

The council has received letters of objection from nearby residents who are concerned that it will block out light and that any balconies built would result in a loss of their privacy.

The company which has the hotel and made the planning application is owned by Malcolm McKee.

His agent and architect, Steve Jenneson, from Jenneson Associates, said: "The plan is to provide residential apartments in two separate blocks which will all be for sale.

"Mr McKee has said he intends to honour commitments to any existing bookings which people might have with the hotel."