Business leaders have called on a council to review the sale of land to a hotel operator.

De Vere Village Hotels wants to turn the derelict Patcham Court Farm in Brighton into a 128-bedroom four-star hotel complex.

The firm, which is an offshoot of the company which owns The Grand on Brighton seafront as well as the Hotel du Vin in Ship Street, proposes to transform the 3.6 acre site into a health and fitness centre, with a restaurant and some office space.

De Vere Village Hotels would manage the site, which is near the junction of the A27 and A23, on a 125-year lease.

About 200 jobs are expected to be created at the hotel with a further 25 in the offices.

The sale of the leasehold was given the go-ahead earlier this year by the previous Conservative administration of Brighton and Hove City Council.

De Vere Village Hotels is now seeking planning permission.

But business leaders have criticised the decision to put a hotel on the site.

Tony Mernagh, executive director at the Brighton and Hove Economic Partnership, has written to Councillor Gill Mitchell, chairwoman of the council’s overview and scrutiny committee, to ask that they consider the implications of the decision at a cabinet meeting next Tuesday.

In the letter, seen by The Argus, Mr Mernagh asks how the decision complies with the council’s established strategies for land use.

He said: “Is this best strategic use of the land? What precedents will be established if the sale proceeds?”

The Brighton and Hove Chamber of Commerce joined the Economic Par tnership in calling for the decision to be referred to the council’s scrutiny committee.

Julia Chanteray, chairwoman of the Chamber, said: “It’s a shame that the Patcham Court Farm site is to be developed as a hotel and conference centre. In our view this is not the best use of such a valuable piece of land.”

Jason Kitcat, the council cabinet member for finance and central services, defended the move.

He said: “The decision was taken by the previous administration but I have looked at the detail and I am satisfied it represents the best value.

“It is a mixed use development offering office space as well as hotel rooms. Critics need to think about whether it would be the best use of the land to leave it empty.

“The business community has often said it needs office space in the city centre and near railway stations which this site isn’t.”

William Broadbent, a partner at the De Vere Group, said he was surprised by opposition to the project.