THE Georgian Hotel, a cornerstone of Haslemere High Street, has suffered a second major blow.

Award-winning hospitality company Cirrus has pulled out of its deal to manage the business.

The deal hinged on hotel owners Lannister House getting planning consent for a £2m renovation to transform the “struggling” 43-bed business into an upmarket 12-bed boutique hotel.

The scheme included a refurbished public bar, a function space/restaurant to cater for up to 150 guests and private dining rooms.

The revamp would be funded by building a block of apartments and three houses in the grounds.

Going against their officers’ recommendations, Waverley planners rejected the ‘enabling’ development in April.

Responding to the Cirrus decision, Lannister House chief executive Richard Angel said: “This is a massive loss for the Georgian and a massive loss for Haslemere.

“Cirrus run some of the best boutique hotels in the UK and would have brought a fantastic new offer to the town.

“Like many businesses along the high street, The Georgian Hotel is struggling.

“It has not made a profit for more than six years, been in administration multiple times and the current accounts show the hotel running a loss into hundreds of thousands of pounds.

“We have received many letters and emails of support from Haslemere residents.

“We will need to see if we can find an alternative hotel operator and are currently reviewing whether we appeal the decision of Waverley Borough Council to reject our planning application.”

The news comes days after The Daily Telegraph property section identified Haslemere as the town with the third highest number of independent shops in the UK, and the entrepreneurs behind the redevelopment of The Georgian Hotel as champions of the High Street.