A NEW hotel is set to be built to serve the Blackburn area and replace beds lost when a landmark stop-over is demolished.

Blackburn with Darwen Council has approved plans for the new development as part of a service station to be built just off the M65 in Lower Darwen.

And regeneration chiefs hope the new scheme with help cushion the loss of the 98-bedroom County Hotel in Preston New Road, which is being knocked down to make way for 80 new homes.

The 5.9-acre site currently occupied by the County, owned by Milton Keynes-based RegaL Hotels, will be used by national homebuilder Fairclough Homes Ltd to build 30 flats and 50 detached, semi-detached and terrace homes.

Council regeneration chief Coun Ashley Whalley said the council would do all it could to improve the level of hotel accommodation in the area after business leaders expressed concern about the closure of the County and the loss of bed-space for tourists and businessmen.

But fears about a lack of hotel bed space will be eased once East Lancashire's first motorway service station is built, even though the number of beds available at the new hotel has yet to be revealed. A part three-storey and part one-storey building will be erected on land next to junction four of the M65.

The plans, by Petromar PLC, were approved by a meeting of Blackburn with Darwen's planning and highways committee. Included in the planning decision is permission to use the building for retail and food uses as well as a hotel. There is also provision in the scheme for a petrol station.

However, residents expressed concern that the development would devalue their homes and lead to a rise in the area' crime levels.

Coun Mike Barrett said: "I believe there is concern that criminals could be attracted to the area as there would be a quick get away for them into nearby fields and roads."

Letters presented to the council said residents had been told by estate agents that house prices could fall by up to 12 per cent.