East Riding Council’s Eastern Area Planning Committee heard from the owner of the Ransdale Hotel, in Flamborough Road, who said growing competition meant was no longer financially viable.
Committee member Cllr John Copsey, who represents Bridlington South which includes Flamborough Road, said the “eyesore” hotel should be torn down.
Councillors heard from the applicant’s agent Mark Stobbard that the hotel would be torn down instead of converted because the building had grown “tired” and no longer fit the area.
The applicant and council officers are now set to discuss contributions for affordable housing and open spaces, known as a Section 106 agreement, before plans are formally approved.
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But resident Stephen Fish told the committee the four storey apartment block would leave his neighbouring home overshadowed.
He added the apartment block would also not be in keeping with the area and its 17 underground parking spaces would not be enough for future occupiers and visitors.
Council officers said the amount was acceptable and concerns over planned vehicle access onto Sands Lane affecting traffic were outweighed by its location near Bridlington’s town centre and transport links.
The applicant’s agent Mr Stobbard said: “The hotel is no longer commercially viable, since Bridlington’s Premier Inn opened revenue has slumped.
“This will only get worse if more budget hotels come to the area and it’s not possible to invest in a modernising project for the building.
“The new apartment block will add to the area, the current building is somewhat tired and out of character in the area.”
Mr Fish said: “This apartment block would overshadow my property and it would create noise disturbances and traffic problems for myself and other residents.
“The reason I bought a house in Bridlington was because of the historic setting, this would not fit in with the area.
“I’m concerned about the number of apartments proposed, it could see 50 new residents come to that part of Bridlington which would be a 350% increase in population density.
Cllr Andy Walker, ward member for Bridlington South, said he wanted the plans refused due to traffic concerns.
Cllr Walker said: “This application raises a host of questions, there’s 17 parking spaces proposed and that’s before we start talking about visitors.
“It’s near the beach and as we saw over the summer there’s a lack of capacity without a controlled parking zone.”
But Cllr Copsey said while he had sympathies with Mr Fish he believed the “eye sore” hotel needed to be demolished.
Cllr Copsey said: “The hotel is in a very prominent part of town, it’s an eyesore and in a state of disrepair.
“I’d like to see these plans go forward, there isn’t adequate parking on the site as it is so I welcome the 17 spaces in the application.”
Committee chair Cllr Sue Steel said: “I do sympathise with residents, but this will be an improvement on what’s already there.
“It’s also going to bring two and three bedroom apartments to the area, including some affordable ones.”