HOPES of a £2m revamp of Haslemere’s “struggling” Georgian Hotel, were dashed when an enabling development plan to fund it was rejected by Waverley planners.

In a crushing defeat, southern area committee members overturned their officers’ recommendation that the application should be accepted – and voted by eight to one to refuse it.

Plans to convert the Georgian Hotel’s linked modern annexe into an apartment block with 16 flats, and build three new houses in the grounds to fund a £2m revamp of the historic High Street building, have split the community.

Haslemere Town Council is among the protesters and former town mayor Malcolm Carter used the public speaking slot before committee members determined the application, to reiterate its objections the proposed boutique hotel would be a loss of amenity because it would not have a large enough space for town functions.

The town council also objected to the lack of affordable housing, the reduction in parking spaces and the “overbearing” new houses proposed.

The application triggered 75 objections but more than 240 letters of support and a petition signed by 459 people.

Divided opinions have split Haslemere Society, with its chairman Chris Harrison in favour of the scheme but its vice-chairman John Greer, who is chairman of its planning committee, opposed to it.

Mr Greer also spoke out at Tuesday’s meeting to say “no convincing evidence” had been produced to demonstrate the current 43-bedroom hotel was not viable as a successful business model.

Speaking in support of the scheme, Lannister Hotel chief executive Richard Angel said: “This is an opportunity to revive a crumbling hotel at the heart of a busy thriving hub and to give the town something very special for the long term.”

Two town councillors who are southern area committee members voted to overturn their officers’ recommendation and refuse the scheme.

Town mayor David Round said: “The Georgian is a central part of Haslemere. A lot of people don’t want to see it go. They want to save it and they are not covinced this plan will do that.

“I am amazed officers recommended acceptance. The viability report is appalling.

“This is the only place in town providing feasts. Lythe Hill Hotel will be bigger and quite different.”

Echoing concerns voiced by Mr Round and town borough councillors on the committee, Haslemere town councillor Libby Piper objected there was not enough parking for the proposed residential use and those using the hotel, and that the new homes were overbearing and would result in a loss of privacy.

Haslemere town and borough councillor Jim Edwards was a lone voice in support of the scheme. Mr Edwards told the committee: “This is a very difficult application. When I first saw it I was rather unhappy but I have swayed back and forth.

“In the real world, it’s not an attraction. People don’t go there. The restaurant is empty and needs upgrading.

“The hotel needs investment. If people are not using it, it’s not viable.

“We have a 43-bedroom hotel not being used. I don’t know if anyone else could operate it any better. Hollybourne Hotels built the annexe on the understanding that if it didn’t work, it could be turned into apartments. Boutique hotels work. We are split down the middle. The younger generation wants this to go ahead, the older generation doesn’t.”