A LOSS-making hotel is set to be converted into new flats.

Councillors approved the plans for the Preston Park Hotel in Brighton after the owners said he could no longer compete with cut-price chains.

Members of Brighton and Hove City Council's planning committee unanimously agreed the building could be turned into 22 flats, nine of which will be affordable.

Some councillors raised concerns about the noise the homes could experience from the nearby A23 but officers said this could be solved with rooms that could be ventilated without needing to open windows and double glazing.

Others said there was not enough parking - only one space per flat with one left over including some disabled bays.

Councillor Carol Theobald said it would be sad to see the hotel close but the plans looked good and welcomed extra homes being built in the city.

Directors at the hotel previously told The Argus said the 34-bed venue is currently trading with “unsustainable” annual losses of up to £103,365 and has required capital injections of more than £53,000 per year to continue trading.

Director Rovertos Savvides said smaller hotels could not compete with the reduced rates of hotel chains like Travelodge.