PLANS to convert a large Scarborough hotel into student accommodation seem likely to fail because planners say it will damage the resort's stock of holiday accommodation stock.

Nightclub and disco owner Alf Arton wants to convert the struggling 55-bedroom Carlton House Hotel, in Carlton Terrace, on the South Cliff, into rooms for 29 students and a manager.

He has told the borough council that the business is unviable and has only an 8.5 per cent occupancy rate. "The hotel has proved unmarketable and there is a demand for student accommodation," he said.

Mr Arton said the property could revert to a hotel if necessary in the future.

But neighbours have objected, claiming the students will cause disruption in the area by playing football on a nearby car park and causing noise. They fear their property prices will fall and that out of term-time it could be used as a DSS hostel.

The University of Hull's Scarborough campus, which expects to have 1,600 students later this year, says there is a demand for accommodation.

While the council's central urban planning committee gave the scheme the go-ahead, the parent development and regulation committee is being recommended by officers to reject it.

Derek Rowell, director of technical services, said: "There is a very real danger that approving this application will make it extremely difficult to resist similar ones in the future to convert hotels.

"The cumulative effect of the loss of large hotels would clearly undermine the ability of Scarborough to build on its conference trade, which is critical to future prosperity."