HOTEL giant Travelodge has confirmed it was actively interested in taking on the Torquay's former Palm Court Hotel site.

Torbay planners have given the go-ahead to a £12million Abbey Crescent complex with half-residential and half-holiday apartments.

Developers Havard Tisdale had argued the hotel should be allowed to go fully residential because of a lack of demand for hotels.

However, Travelodge has confirmed that it had been part of a consortium bidding to buy the site but had lost out to Havard Tisdale.

Steve Tyler, development director for Travelodge, said: "We were interested and we would still be interested, though that's academic now.

"We have two hotels in the Bay and are still interested in a further one in Torquay.

"If a suitable site became available in the town which met our requirement, we would be still be interested.

"It's not a top 10 requirement as we are already represented in the town, but we would still be interested."

Previous developers Riviera Developments obtained permission to build a 100-bedroom hotel as part of the project, which also includes eight two-bedroom flats, a signature rotunda restaurant, cafes, shops and 42 parking spaces.

A spokesman for property specialists Raine Richards, which was involved in the deal with Travelodge, said: "Our clients Travelodge remain committed to find an alternative site within the Bay in order to provide hotel accommodation which meets modern family needs while at the same time bringing much-needed employment, and tourist expenditure to the Bay.

"It is hoped one of the sites identified can be brought to fruition quickly.

"However, this remains wholly dependent upon the co-operation of the many parties involved in the planning process."

John Havard, director of Havard Tisdale, said: "Havard Tisdale is aware there has been potential interest from a number of budget hotel operators in locating additional sites in Torquay for some years.

"The previously approved planning consent for the Palm Court site, included a 100-bed budget hotel.

"However, a viable scheme was not forthcoming and the site owners went into administration.

"Unfortunately, operator interest on its own does not necessarily result in a viable scheme being delivered.

"The fact that a hotel development has not been achieved in more favourable economic circumstances suggests this is not be a feasible option for this site.

"Our proposals for the former Palm Court sought to move away from the provision of a budget hotel, both in terms of viability, and also because we felt this was not necessarily the most appropriate reuse for this landmark site.

"Instead, our proposals include 14 self-catering holiday apartments.

"An independent viability assessment confirmed this package as the most likely to deliver a holiday use on the site in the current market."