A GRADE II-listed city centre ‘boutique hotel’ could be transformed into flats after a ‘disastrous’ year.

The owners of the Museum Hotel in St Aldate’s, Oxford, are ‘under immense pressure’ to pay back money to lenders after a major restoration six years ago.

But since the facelift, there have been huge multi-million-pound plans for more hotels in Oxford that the owners of the small hotel say will affect small businesses even when things bounce back to normal after the pandemic.

The worries come as Premier Inn launches a flagship hotel near the Westgate, Easyhotel gears up to open in Summertown, the Randolph Hotel gets a major refurbishment, plans for a large hotel at Boswells earn the backing of planners, and ideas are floated for an additional hotel in the now-closed Debenhams department store.

In the plans submitted to Oxford City Council, Headington-based Digby Architectural developers explained: “The reason for [the plans] is due to the fact that 2020 has been a disastrous year in terms of occupancy and business in general.

“The restoration of the building resulted in a high amount of borrowing, and waiting for the economy to bounce back is no longer an option for my client whom is under immense pressure off the lenders.

“Since 2015 there have been further developments elsewhere in the city including the imminent arrival of the Easyhotel in Summertown, that are likely to affect business to small enterprises even when things bounce back.

Owners of The Museum Hotel in St Aldate’s, have applied for permission to turn the building into flats after their trade was decimated by the coronavirus pandemic. Picture by Ed Nix

Owners of The Museum Hotel in St Aldate’s, have applied for permission to turn the building into flats after their trade was decimated by the coronavirus pandemic. Picture by Ed Nix

“As such, my client has taken this difficult decision and wishes to try for apartments again.”

The idea is that the 10-bedroom hotel, which is thought to have first been built as a house in 1594, would be split into three parts. The front part of the property would become a two-bedroom ‘duplex’ style apartment over the first and second floods.

A bedroom would be converted into a kitchen and diner and the main reception area and office would be turned into a sitting room. The mid-section of the hotel, including the conservatory, would become a four-bedroom house of multiple occupation, all with en-suites.

In the plans, the developers said: “The bedrooms have plenty of daylight but no real outlook. The communal space is quite spectacular so this would make up for it.”

Owners of The Museum Hotel in St Aldate’s, have applied for permission to turn the building into flats after their trade was decimated by the coronavirus pandemic. Picture by Ed Nix

Owners of The Museum Hotel in St Aldate’s, have applied for permission to turn the building into flats after their trade was decimated by the coronavirus pandemic. Picture by Ed Nix

The final part – the back section of the hotel as it is, would be made into a one-bedroom apartment.

There are no plans for parking, bike storage, changes to the betting-shop Ladbrokes beneath or places for wheelie bins.

The architects said the building had been left empty for most of 2020, adding: “At present the hotel is no longer viable as a business venture and, as such, the building is at risk of suffering neglect.

“Having had so much gone in, in order to restore it in 2015 it would be a real loss if it were to end up remaining unoccupied for too much longer.”

• To view the planning application in full visit the Oxford City planning portal and use the reference code 21/00036/FUL