A HOTEL may be knocked down and replaced with flats, despite concerns that the move will affect tourism.

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

The hotel is the largest in the town and has 49 bedrooms, function rooms, conference suites and a night- club.

Redcar and Cleveland Borough Council planning committee is being recommended to approve the development when it meets on Thursday.

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 visit for a meal or a drink."

The scheme would involve demolishing the hotel and building two 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.

Malcolm McKee, whose company owns the hotel and who submitted the application, was unavailable for comment, but his agent and architect, Steve Jenneson, from Jenneson Associates Limited, said: "The plan is to provide residential apartments in two separate blocks which will all be for sale.

"The date when the hotel would be closed is dependent on two things - gaining planning permission and Mr McKee has said he intends to honour commitments to any existing bookings that people might have with the hotel."