Mega-HMO planned for 'unviable' Preston hotel where guest numbers have plummeted

A hotel in Preston city centre could be converted into a house in multiple occupation (HMO) with more than two dozen bedrooms.

The operators of Ashwood House, on Fishergate Hill, say the venture is “commercially unviable” in its current form.

Alongside its paying guests, the three-storey hotel has also been providing accommodation for the homeless, in conjunction with Preston City Council.

However, a planning application submitted to the authority seeking permission to turn the building into a 25-bed HMO states that the business has been hit by “a sustained decline in occupancy” as a result of “changing market conditions… and shifts in local tourism patterns”, as well as changes to the city council’s homelessness service.

Applicant Beck Design and Build Limited wants to create bedrooms across all three floors of the property, each of which would have two shared bathrooms, with a dining area and kitchen at ground level.

Documents submitted to town hall planners state that while Ashwood House officially operates as a hotel, it has recently “predominantly focused on providing accommodation for the homeless”.

“[It] has a good working relationship with Preston City Council and the Homeless Prevention team, but due to [a] policy change…the number of rooms now required by the council has fallen by 70 percent and the hotel's current business plan is no longer viable,” a planning statement explains.

A new homeless shelter operated by the city council is due to open shortly at Oakham Court. The authority also has a facility in a unit opposite the Flag Market.

The planning application for the HMO adds: “The proposed scheme would create a high-end residential development that provides much needed accommodation to the local workforce and for people that require accommodation close to the railway station and city centre.

“The [creation of] a 25-bed HMO is considered to be compatible with the surrounding residential character of the area. The proposed change of use of the hotel…is not considered to lead to an over-concentrated use of the property, or an excessive increase in noise and disturbance due to its existing use class.”