A beachfront nightclub owner has faced a mixed reaction from neighbours over his plans for a £2.5 million redesign.

Ali Kosari, whose proposals to turn the Babylon Lounge on Hove seafront into a 1,000-capacity club were rejected last year, has unveiled new plans for a restaurant and entertainment complex at the site.

The complex would include conference facilities, a live entertainment stage and a venue for weddings.

Incorporating a nautical theme, the club's two bars would be refurbished, an ice cream kiosk upgraded and a beer and sculpture garden built at the rear. Room for a restaurant and roof terrace would be built on top of the club.

Mr Kosari said he expected about 200 more people a day to use the complex, mainly because of the new restaurant.

Last night about 30 mostly elderly neighbours attended a public exhibition of the plans.

First reactions were mixed.

Sandra Coleman, chairwoman of the nearby Fairlawns Residents' Association, said: "We seem to have an awful lot of rabble-rousers walking past at 2am and we are worried about 24-hour drinking."

Mrs Coleman said she had written several letters of objection against the previous plans to expand the nightclub but said the new proposals were an improvement.

Graham Youngs, a 40-year-old property developer, of Sackville Gardens, said: "Our biggest problem has been students walking home from the club in the middle of the night. They stand outside our house singing and shouting.

"The new plans will just attract more people. If a bus service was introduced it would make me feel more comfortable."

Others were less concerned. Vanessa Franklin, 38, who lives opposite the nightclub, said she had endured late-night revellers urinating and having sex outside her lounge window but she hoped the new plans will attract a different clientele.

The Babylon Lounge counts Sir Paul McCartney and Norman Cook among its clientele.

Brighton-based architects LCE Archimed, which designed the new Jubilee Library in Brighton, was hired to draw up plans for the extension.

Mr Kosari hopes to submit a planning application for his latest proposals to Brighton and Hove City Council by the end of this week.