Huge £20m boost for UK seaside town's famous 'abandoned' hotel

A popular hotel in a Cornwall seaside resort is set to reopen after a £20 million investment scheme, months after its closure caused a ripple of "shock" through the community. The Hotel Victoria had been a landmark of East Street in Newquay since 1899 when it suddenly closed its doors, alongside an adjoining nightclub, in November 2024. Residents described the news as a "shock" and "extremely sad", paying tribute to the longstanding institution that had been "a big part of people's lives".

Local officials have now welcomed new plans to invest in and redevelop the site - although some are less certain than others about accompanying proposals to build 77 flats in the former nightclub space. Construction director Drew Wrintmore said the "engine of the residential development" was necessary to support the hotel's future, with the £20 million investment set to create 100 jobs in the town.

"Viability, when we eventually get the final design of the scheme, will determine whether or not there is any affordable housing," he told the BBC. "But the properties will not be priced out of regular market range."

"High-end hotels in vibrant towns work really, really well, but they need to be done properly," he added. "The hotel itself, the fabric is falling apart, especially the root of it.

"The investment in it, a lot of it you'll see, but a lot of it you won't see because it will be buried in the fabric of the building."

While details of the redevelopment have not yet been confirmed, proposals from the Nicholas James Group could see it transformed into a four or five-star hotel.

Mayor of Newquay Drew Creek said the adjoining flats would be a welcome addition to the town so long as they are "truly affordable".

However, others worried that the new plans would cause "overcrowding" problems and damage Newquay's architectural heritage.

"If it keeps its front, as it says on those pictures, then that's fine," a resident named Linda said.

"But to build cardboard boxes next door that we can walk down the barrow fields and see, I think is a shame. It's a crying shame."

Many will no doubt welcome the news of the hotel's reopening, however, with Cornwall Councillor Louis Gardner describing the closure in the autumn as "a shock to us all".

Former marketing manager for the hotel, Tony Townsend, also said the loss of the club was "extremely sad".

He told the BBC: "I think a lot of people have grown up with [it] ... They maybe went along as a youngster, as a teenager. I think it has been a big part of people's lives."