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A historic village hotel and former pub is set to be converted into houses after a combination of Brexit and Covid left the business struggling financially.
The owners of the Grade II-listed White Cliffs Retreat in St Margaret's-at-Cliffe, near Dover, have said the "extreme circumstances and disruption" have made the business unviable.
However, residents were adamant there could be a future for the High Street venue, which has previously been home to a pub and restaurant.
Speaking at a meeting of the Dover District Council planning committee on December 15, parish councillor Rebecca Simcox outlined the concerns of villagers.
"To be clear, it is a pub we are fighting for," she said.
"There has been a complete failure to consider this element separately. Policy recognises the importance of pubs to the economic and social well-being of rural communities.
"Our High Street, centre of the village, one-tenth of a mile, had four pubs five years ago. The closure will mean just one.
"Our community's social well-being is at stake."
The application for planning permission, which was first submitted at the end of 2020, outlines the conversion of the weather-boarded building into three homes.
Each of the properties would have a rear garden and allocated parking to the front.
In a written statement in support of the plans, a spokesman for the applicant said: "The site has been operating as a hotel for many years and the current owners have continued to invest heavily in the building to make it an attractive venue for clients to stay in.
"However, due to the extreme circumstances and disruption to business that Covid-19 and Brexit has had, the hotel is now financially unviable and the building is at risk of deterioration."
Cllr Simcox argued no attempts had been made to market the business for sale, and disagreed with viability reports that had shown the negative financial outlook for the business.
Members of the planning committee voted narrowly to grant planning permission, voting five for and four against the recommendation of officers to approve the plans.