Newquay is trying to market itself as an all-year destination

Developers want to build houses on the sites of the Breedon Court Hotel and The Ambassador Hotel.

Businesses have opposed the plans because they want to encourage more visitors to stay in the area.

But planners at Restormel Borough Council say they must meet the needs of local residents.

Under the plans, the Breedon Court Hotel would be replaced with 51 homes and The Ambassador Hotel with 64 apartments.

The chairwoman of Newquay Chamber of Commerce, Jill Moore, said she was disappointed the plans were approved.

She said she thought Newquay was under siege from property developers and too many hotel beds were being lost.

She said: "The ones that we are losing appear to be larger buildings with big 'footprints' because they are attractive to developers."

Jeanie Wilson, of the Breedon Court Hotel, said staff tried for six years to make the business work. She said more money was needed to come into the town and that the plans would bring other businesses to the area.

She said: "I'd like to see Newquay do what other resorts do to see more commercial opportunities. It would be nice to see some progress."

Public interest

Andy Cole, of the Newquay Regeneration Forum, said: "All decisions have to be looked at from a balanced point of view.

"Obviously there are a lot of people who are going to reflect on the loss of bed spaces. But, equally, others are going to say we need more housing for young people.

"That would mean more sustainability as there would be extra money in pockets all through the year."

The council will now need to approve detailed planning applications before any houses can be built.