Owners of a fire-damaged Aberystwyth hotel have applied to turn the building into four self-contained holiday lets rather than a hotel after the pandemic ‘fuelled demand’ and left ‘server staff shortages’.

Ty Belgrave on Marine Terrace was ravaged by fire after an arson attack in 2018 and work has since begun to rebuild it as a hotel.

A plan to use the site for flats was abandoned in its early stages.

While the nine-bedroom hotel plans were given the green light by planners, owner Emyr Davies has now lodged an application with Ceredigion County Council for full planning and listed building consent to turn the building into four self-contained holiday apartments.

The plans would see the building house four self-contained two bedroom flats each with its own living space and kitchen area.

Planning documents said the new plan, while losing one room, would provide “more spacious accommodation” amid a “demand for self-catering” among tourists.

Documents said: “The onset of the Covid-19 pandemic has further increased the demand for a more private holiday let.

“The pandemic has also resulted in severe staff shortages in the industry.

“The holiday flat concept, however, reduces demand for servicing.”

A planning justification report said that market research shows there is a “move away” from small hotels with rooms.

“Over the past two years the trend and demand for holiday flats that can be let to family groups or couples using internet letting and electronic booking has increased, and the hotel owners wish to be able to respond and accommodate this market trend,” documents said.

“Due to a combination of events including the change in market demands and shortfall in leisure industry staff post Covid, an opportunity presents itself at Ty Belgrave to now provide four high-quality holiday let flats.”

An application for listed building consent to “reinstate and refurbish the property as a hotel” was approved last year.

Work to rebuild the building has begun, and several amendments to the permission have been applied for following the start of work, with a separate application currently being considered to demolish and rebuild the front wall of the listed building.

Planning documents from developers say that while the plan “is to retain where possible the existing building envelope”, “major works are required to be carried out to demolish and rebuild the front wall from first floor level due to fire damage”.

The work will also require a “complete rebuild” of the building’s roof.

Guest Juozas Tunaitis was killed in the fire at Ty Belgrave on 25 July 2018 and another guest, Richard Simnett, suffered major injuries when he fell while trying to escape the blaze with his family.

Damion Harris admitted starting the fire, but said he could not remember why he had done it.

Harris was sentenced to 16 years in prison after admitting manslaughter, arson and causing grievous bodily harm.