The "inclinator" will provide access to a beach-side restaurant

Mr Stein's plans for a �3m hotel and restaurant at Newquay on the site of the Rocklands Hotel are to be decided on Tuesday.

And if Restormel Borough Council agrees the plans Mr Stein could be in line for the cash from European Objective One funding being offered to all Newquay hoteliers, who meet strict criteria, to help move the bucket and spade resort upmarket.

Mr Stein would be eligible to apply for the cash once his 30-bedroom hotel was up and running.

Raising game

The Honey (Hotels of Newquay Enhance Yourself) project has already seen 40 local hotels and guest houses sign up to the three-year business improvement programme.

Spokesman Jason Clark said: "Honey is there to help hoteliers and is part of raising Newquay's game.

"The fact that Mr Stein is opening a hotel and restaurant there is an example that Newquay is already doing that.

"He may not need the money, but he will be eligible to apply for it."

The hotel will have a cable car-type "inclinator" to transport guests down to a restaurant on Tolcarne Beach below.

Tourist type

A cobalt-blue wall shaped like a fin will mark the entrance to the hotel.

The development has undergone a public consultation and will go before Restormel Borough Council's Development Control Committee on Tuesday.

Supporters of the proposed development say it could help change Newquay's image to attract a different type of tourist to the resort.

Phil Randall, strategic development officer at Restormel Borough Council, said: "Our approach to development in Newquay is to up the quality of hotels and up the stock at the top end of the market."

Building work is due to start in March and end by February next year.

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.