The former Sun Hotel in Gainsborough is no longer going to be a Premier Inn.
Premier Inn were announced as the company who were going to open the new hotel, on the corner of Market Street and North Street, in January last year.
But a spokesman has now confirmed that Premier Inn are no longer going ahead with the hotel project in Gainsborough.
A spokesman from the hotel developer, Dransfield, Properties said: “Premier Inn are not at this point looking to develop a hotel on the former Sun Inn site.
“We are however working with another hotel operator and look forward to our planning application for this key site in the town centre being determined later in the year.”
Strategic lead for economic development at West Lindsey District Council, Eve Fawcett-Moralee, said: “The council is working with Dransfield Properties to see how we can help them in moving forward with plans to transform the Sun Inn.
“This is just one aspect of the wider work the council is undertaking, along with our partners, to regenerate Gainsborough.”
Leader of Gainsborough Town Council, Councillor Matthew Boles, said: “This is a disappointing development as I think it is widely agreed a hotel in Gainsborough is vital to its economic growth and development.
“The project had the wide ranging support of councils, businesses, traders and general public which I think demonstrates the need and desire for such a development.
“I hope it is only a blip and we can all work together to achieve this vital aim of delivering a hotel in the town.”
Plans were resubmitted for the hotel to create an additional 16 rooms in November last year and these are currently waiting to be approved by West Lindsey District Council Planning Committee.
The plans for the new hotel have been revised to include the extra rooms, making the brand new building slightly larger and catering for more visitors to the town.
West Lindsey District Council’s Planning Committee unanimously approved the previous application for the £3 million development in August 2014 and the decision was upheld by DCLG later in the year.
Dransfield Properties is working with the architects Dixon Dawson to deliver an attractive Edwardian style hotel which is in keeping with the neighbouring buildings and housing a total of 67 bedrooms.
The plans for the redevelopment of the run down former Sun Inn site have been widely supported by the business community in Gainsborough.
Once completed the development will bring 30 new jobs to the town as well as a much needed good quality hotel in Gainsborough.