Old Thorns Group business development director Neil Drinkwater has warned that unless a comprehensive redevelopment gets the go ahead, Lythe Hill hotel will close by the end of the year because of mounting losses.

“If this planning application fails to get approval, Lythe Hill will close within six months, because it cannot sustain any further losses.

“We are aiming for completion within three years and are estimating expansion costs at around £30 million. In addition, the aspirations are to turn Lythe Hill into a five-star hotel.”

The recebt public consultation to consider the proposed multi-million pound expansion of Lythe Hill attracted many residents

Mr Drinkwater pointed out a total of £3.5 million had already been spent on the hotel to make it “legal and roadworthy” by adding brand new kitchens and commissioning the complete restoration of its grade II listed Tudor building.

The director reassured the people attending his group considers the hotel to be a community-based project, bringing new business and job opportunities to the area – ultimately becoming the hub of the community.

He stressed Lythe Hill would not become a second Old Thorns and there were no future plans to build a golf course on the site.

Nick Tsiknas, from Inside Out Architectural Consultants, was able to address residents about a number of their concerns, including lighting, noise pollution, and drainage issues.

Tree planting would help soften the site along with landscaping, while the access and right of way to a public footpath would continue, while there was also a pledge to carry out road repairs. He also confirmed a construction management plan would be put in place.

Haslemere Chamber of Commerce has written to Waverley Borough Council, urging it to approve the proposed plans.

Chamber president David Goddin said: “The investment is significant and will be a shot in the arm for Haslemere and Waverley.

“Having considered the proposals for development at Lythe Hill hotel, Haslemere and District Chamber of Trade and Commerce is of the opinion the project will have significant benefits for the Borough of Waverley, the town of Haslemere and its wider area of economic influence.

“The injection of capital, on the scale the project envisages, represents a massive vote of confidence in the area, with substantial potential to underpin local business growth.

“It will undoubtedly contribute towards the realisation of chamber and council expectations on economic development and, we hope, also encourage further commercial investment.

“Business and community leaders are actively promoting Haslemere and its surroundings.

This project will provide a wealth of additional promotional opportunity.”

In the chamber’s view, it would especially:

• Enhance Haslemere’s potential as both a destination town and a gateway to the many attractions of the South Downs region

• Create job opportunities for local people at the hotel and in other businesses

• Increase footfall in the town with fresh support for the retail sector cascading to professional and commercial service providers

• Provide new high-standard leisure and restaurant facilities.

Mr Godding added: “Haslemere Chamber urges Waverley Borough Council to acknowledge the potential of this proposed development by granting authority for it to proceed.”

The application has received the full backing from Haslemere Town Council who told Waverley Borough Council it advocates “a scheme seeking to add value to the town and encouraging people who would not normally visit the town to travel.