The inclinator will provide access to the beach from the town centre

Mr Stein had intended to refurbish the former Rocklands Hotel above Tolcarne Beach at a cost of �600,000.

Together with his wife Jill, the couple had planned to spend a further �1m doing it up.

But the re-build has now been costed at �2.5m.

Now Mr Stein is seeking planning permission to demolish the building and start again on the site.

"It wasn't in a very good state in the first place anyway," said Jill Stein.

"To build it up from the old hotel and knock it down there was not very much difference in the price so we decided that we would knock it down and make a fantastic new hotel."

The hotel, which includes a restaurant, would be linked to another restaurant on the beach below by an inclined lift called the inclinator.

The architects who drew up the plans believe it could become a local attraction.

Their designs go on show to the public at the Great Western hotel in Newquay on Tuesday as part of the consultation process.

Mr Stein already owns the Seafood Restaurant in Padstow, which he has run for 26 years as well as a number of other businesses in the town.