Wetherspoon has scrapped plans to build a £2.5 million seafront hotel above one of its pubs – but hopes to expand the boozer instead.

The chain had wanted to launch the 20-room facility over The Saxon Shore in Central Parade, Herne Bay, as part of a venture expected to create 40 new jobs.

But this week, it has emerged the company has dropped the proposals - with the decision described by councillors as a setback for the town.

Senior Tory Andrew Cook believes this makes the search for alternative seafront sites that could house a hotel “even more important”.

“We’re crying out for good accommodation in the centre of town,” the Conservative city councillor told KentOnline.

“It would allow people to stay here for shows, weddings and all those kinds of things because without them you can’t get those other kinds of industries operating.

“We’re missing out on all this extra footfall.

“This news is a step back for the Bay, no doubt.”

When the hotel plans were unveiled two years ago two years ago, Wetherspoon spokesman Eddie Gershon said it could act “as a catalyst for other businesses to invest” in the area.

However, he now says the seven-figure project has been binned, as it “looks at the possibility of extending the customer area upstairs”.

Cllr Cook insists he will press Canterbury City Council officials to ensure a hotel is built in place of the run-down shell of the old Tivoli amusements a few doors down from the pub.

“Maybe this means we’ve really got to concentrate on getting a hotel at that development,” he explained.

“That’s become even more important now.

“I’ll get on [to the council] to say ‘crikey, we’ve lost Wetherspoon – we’ve got to try everything we can to get a hotel at the Tivoli’. There’s room for both hotels and Airbnbs here.”

The site – which includes the Beach Street car parks to the rear – had been put on the market with planning permission for three shops and 31 homes by the city council 12 months ago.

It was revealed last month the plot has attracted offers from a number of bidders, as authority bosses weigh up their options.

Wetherspoon struck a deal with the city council in 2020 to buy a 65sqm chunk of the development site behind the tavern to accommodate a reception area for the planned hotel.

It was thought at the time the sale would smooth the way for the pub firm to go ahead with the development.

But authority spokesman Rob Davies stresses the land never changed hands.

“We’re aware of Wetherspoons’ change in direction for their plans at the Saxon Shore, but appreciate this is a business decision which they will have their own reasons for making,” he said.

“We are currently considering a number of options for the site and will be taking a report to Cabinet in due course on the wider redevelopment of Beach Street.”