An application to convert a landmark office block into a 64-bedroom hotel has been unanimously approved by the planning committee.

Applicant Keith Lord of Hesketh Investments said Royalty House’s transformation into a hotel will create up to 33 jobs and could welcome some 28,800 guests a year.

The proposal will see the loss of 20,000 sq ft of office space in Douglas but recommending approval, planning officer Chris Balmer said this was acceptable.

Planning committee member Peter Whiteway said: ‘There is too much empty office space in Douglas.’

Committee chairman Rob Callister agreed: ‘There is a lot of office space out there. This is a beautiful building and I think it will be an absolutely fantastic hotel.’

Royalty House on Walpole Avenue was built in the 1990s in the Art Deco style in a nod to the cinema that once occupied the site.

Hesketh’s application (24/00572/B) will see a single storey extension to create a rooftop spa and green energy plant room.

The current 13 parking spaces on the ground floor will be removed and access to them blocked off to provide room for a new restaurant and bar and reception foyer.

There will be 64 bedrooms on the four upper floors.

No parking will be provided for the hotel - an issue raised by a number of committee members - but the applicant insisted that there was ample off-street parking available nearby at Parade Street, Shaw’s Brow and the Bottleneck.

The building is currently advertised for lease for office use from September 2025. There is currently a single tenant who occupies part of the building, but this lease ends in October this year, and otherwise Royalty House is unoccupied.

Agent for Hesketh Investments, architect Niall McGarrigle said the building had been used as offices since 1999 and the applicant was finding it difficult to find a replacement tenant and there is little interest in the market.

He said the scheme would create 18 full-time jobs and the hotel will attract 28,800 visitors annually. He said it will have a positive impact on the day-time, night-time and weekend economy.

Committee members Sam Skelton described it as an ‘excellent development. ‘It will be great for the island and great for Douglas,’ he said.

The committee unanimously voted to give planning consent, which will come with seven conditions relating to the character and appearance of the building, and the interests of highway safety and flood protection.

Businessman Keith Lord has been operating in the leisure sector in the Isle of Man for 17 years.

He currently owns and operates the Mannin Hotel on Broadway, Douglas and also serviced apartments on Rileys Corner, Douglas, and Bay View Road, Port Erin, as well as operating holiday cottages in Lonan.