A public inquiry will decide whether the site of a famous hotel can be turned into luxury flats.

The seafront Warnes Hotel was once Worthing's grandest and in its heyday played host to King Edward VII and Winston Churchill.

But it was destroyed by fire in 1987 and the site is currently used as a car park.

Developer Roffey Builders wants to build 79 flats there but Worthing councillors threw the plan out in March.

Conservationists and residents dubbed the proposed development "a monster" and hundreds signed a petition opposing it.

Now Roffey is appealing to the Government over the decision and a public inquiry is expected to open early next year.

Spokesman Ian Cheal said: "We have made numerous concessions in the design and scale of the building but the council is still telling us there are fundamental differences between what we want and what the council wants.

"It is very frustrating because when permission was first refused we were told that the council and ourselves were very close in what we wanted and that through negotiations we could achieve something.

"Six months have now passed and we appear to be going backwards rather than forwards. It is very frustrating.

"Six months is the time limit for lodging our appeal. We had to do it to safeguard our position but we are still willing to continue discussions with the council."

Council planning chief Mike Bleakley said: "We have always indicated that we are interested in having some type of residential development there.

"However, it was felt the design and scale of the building was not right for the location and that is a view we still have and one we will present before the inquiry.

"We have been in close negotiations with the developers and English Heritage to try to come up with some alternative plans and we will continue to do so.

"We are hopeful that an eventual plan to suit everyone will eventually be drawn up."