A DEVELOPER looks set to lose its long-running bid to transform a derelict Grade II listed hotel in Nelson into homes.

Wilterton Ltd wants to convert the former Groves Hotel, one of the town's most historic buildings, into 14 apartments.

To finance the restoration project of the Manchester Road hotel, the firm also wants to build another 38 apartments in its grounds.

As part of the scheme the lodge would also be converted to a house.

Wilterton originally submitted the plans in July 2005 and the Nelson committee granted planning permission because it met restoration guidelines set by regeneration body English Heritage.

However, a condition was that Wilterton had to justify the need to build so many homes.

But, after several meetings with Pendle Council, Stan Healey, a planning officer for the authority, said the developers had not submitted evidence why so many apartments needed to be built.

As a result, the Nelson committee is recommended to throw out the application when it meets tonight.

Mr Healey said: "The erection of 38 apartments in the grounds of the hotel and conversion of the building into 13 residential apart-ments is considered excessive for the site.

"In the absence of a detailed justification for the number of units to be built in the grounds, the proposal fails to meet the parameters of enabling development as prescribed by English Heritage."

The building, also known as Spring Cottage was built by the Townson family in the 19th century.

In 2001, the three-storey former hotel was badly damaged in a fire which started in a storage cupboard and spread through the roof.

As well as rejecting the planning proposal coun-cillors are recommended to serve a notice on the developers demanding its makes the building water-proof.

The Nelson Committee meets in the town hall at 7pm.