HOPES that a Stourport landmark could, once again, be used as a pub or restaurant appear to have been dashed because of a lack of interest from prospective buyers.

It now looks certain the historic Tontine Hotel will be sold to housing developers in the future and used for homes.

British Waterways, which bought the building in 2001, had hoped to keep it for leisure purposes, in keeping with its policy of protecting important waterside properties.

Alex Ball, project manager for the canal basins redevelopment, confirmed the majority of interest in the building had come from property developers.

"Nothing has been decided at the moment but it does look likely it will be used for residential use," he said.

"We want to preserve the future of the building in the medium to long term and Wyre Forest District Council are very keen to have a restaurant or pub on the grounds and that is something we are looking into."

The Tontine Hotel was constructed in 1772 as the Areley Inn and used as accommodation by travelling merchants as the economy boomed because of the canal trade.

It was saved from demolition in the 1970s after a public inquiry led to the blocking of plans by Wolverhampton and Dudley Breweries, which then owned the landmark, to convert it into flats.