Bosses behind the £20 million redevelopment of a city centre hotel admit that two years on they are still struggling to find shops or restaurants to fill empty ground-floor units.

The former Slatters hotel in St Margaret’s Street, Canterbury, was knocked down and rebuilt as part of a long-awaited projected, relaunching as Hampton by Hilton in 2021.

A rooftop restaurant called Socialite, which opened the following year, was also part of the scheme, alongside two commercial spots earmarked for retail or food and drink businesses.

But project managers at Slatters Development say a lack of interest has forced them into a bid to alter planning conditions to allow alternative firms to take on the vacant space.

Terms agreed in 2015 stipulated the units would have to be shops or restaurants, so the firm - which has an estate agent and private medical practice keen to move in - needs the city council to sign off on amendments.

In documents, it says: “There has been limited interest in the ground-floor units.

“This situation has been further compounded by Covid, which has continued to erode commercial interest in the floor space.”

The city council’s deputy leader, Michael Dixey, says the news is a symptom of the current economic climate.

The Westgate ward councillor (Lib Dem) said: “Unfortunately there’s a lack of interest in many retail units so it doesn’t surprise me that much.

“The developers need tenants to open them and at the moment there aren’t many people queuing up.

“I have no issue with either of those businesses moving in – any business moving in is better than nothing – but it’s not my decision.

“I was surprised they didn’t have any takers as well; there are some buildings which are not so attractive for retail in that area which have been filled.”

Canterbury’s commercial space is currently made up of 70% independent firms, and 30% national. A quarter are food and drink businesses, with 35% retail.

Lisa Carlson, the CEO of Canterbury’s Business Improvement District, says any interest in empty units in the city is positive.

“Commercial interest in Canterbury city centre remains strong, and welcoming a diverse mix of businesses helps to support this,” she said.

She added that the potential arrival of an estate agent and medical practice at the Slatters site “will be seen positively as they will not only bring new visitors to the city centre but also new staff that will be making the Castle Quarter their base”.

Slatters Development did not respond to a request for comment.