Falcon Manor at Settle is to remain a hotel after Craven planners refused fresh attempts to turn it into apartments.

The hotel, which is currently up for sale at £700,000, has been a failing business for years, Craven District Council’s planning committee was told.

Jo Steel, agent for applicants Remove Code Ltd, said the owners had been flexible on the sale price and type of transaction, but had failed to secure a sale.

He added business had been better in the last year, but the hotel had still run at a substantial loss.

Mr Steel also pointed out that Whitefriars Guest House in Settle was also on the market for £690,000 and if tourist demand was so high in the area, both would have sold.

On its website, the hotel is advertised as offering a range of bed and breakfast accommodation only, but is closed until February 1 next year.

Councillors heard that the application to convert the grade two listed former manor into 10 residential units was the same as that refused by the council in September last year and upheld on appeal to the Planning Inspectorate in April this year.

The only difference in the application was the submission of additional supporting information, including details of marketing attempts by Colliers International.

Committee chairman Richard Welch (Cons) said while he had every sympathy, Settle needed rooms for tourists and added that it was difficult to sell a hotel as a going concern when it was currently shut.

“I am sure nothing has changed from the last time we considered this, and I will recommend refusal,” he said.

And Coun Alan Sutcliffe (Cons) agreed that nothing had changed, that the building was an interesting piece of architecture and that if it fell into the right hands, it could flourish.