ANGER has greeted proposals to revamp the derelict Three Cups Hotel with a top name restaurant, shops and high-end apartments. Critics say the multi-million pound development would destroy the historic building and are demanding its re-opening as a hotel.

Owner Palmers Brewery last week exclusively revealed its plans to the News and said specialist architects were being appointed to produce a ‘high quality’ design.

Nigel Jones, the brewery’s commercial property agent at Humberts Commercial, said the scheme would involve a restaurant run by a top-name chef and commercial space on the ground floor, with exclusive flats on the upper floors.

No one from Palmers was available to comment this week, but the brewery has said in the past that ideas of retaining it as a hotel are ‘fanciful’.

Campaigners from the Save the Three Cups group fear the brewery will still forge ahead with its plans and win the support of West Dorset District Council.

Lobbyist Andrew Townsend said: “I would say that the mood in Lyme Regis about the dereliction and danger of the Three Cups seems to have changed from quiet desperation to rising anger.”

At a public meeting in the Woodmead Halls on Friday – attended by 235 people – campaigners accused the council of being in collusion with Palmers.

Resident Steve Campbell said: “Why are they such close bedfellows? What is there that we don’t know about?”

Resident Hugh Dunford Wood added: “They have got the district council nailed – why?”

The lobbyists have renewed their calls for the district council to compulsory purchase the building and reinstate it as a hotel after a unanimous vote of support at the meeting.

David Parker, chairman of the Lyme Regis Hotel and Restaurant Association said: “There is a terrific demand for hotel spaces. I know several people who would buy it as a hotel and turn it into a superb hotel.”

The meeting also heard from existing Lyme hoteliers, who said they would welcome another hotel in the town.

Lesley Stone, owner of the Royal Lion Hotel in Broad Street, said there is very high demand for bedrooms.

“It will bring added employment to the town and more spending money for all the shops and make use of the 32 town centre car parking spaces,” she said.

Kathryn Haskins, general manager of the Alexandra Hotel, said: “Its re-launching as a complete hotel again will bring a wave of new visitors to Lyme, visitors who at the moment we are just having to turn away because there is no accommodation for them.”

West Dorset District Council said it would consider any public requests but has this week renewed its refusal to sanction serving a compulsory purchase notice.

Director of planning and environment David Evans said: “Compulsory purchase would be a last resort for the council.”