The owners of a popular live music venue have said late licensing laws are partly to blame for its closure.

Gavin George, of pub company Zelgrain, said the national licensing changes were the final straw for the Hanbury Ballroom in St George's Road, Brighton.

It is being sold to become a private members' club.

He said the company had suffered financial losses for years to keep the Grade-II listed building open, despite campaigns by some Kemp Town residents to stop live music events.

He said artist bookings were often taken by Brighton's larger music venues and that it was becoming increasingly hard to compete with pubs and bars which now stay open later.

He said: "The problem with the licensing laws is not just specific to the Hanbury. Because more businesses are opening later, environmental health people are getting more calls. I think it has heightened people's awareness.

"Running the Hanbury is becoming ever more of a challenge particularly because it's lost its competitive edge with the late opening. It's time for us to move on and let someone else have a go."

The venue, which always had a 2am licence, is described on Zelgrain's website as the "jewel in Kemp Town's crown".

It has staged bands including Zero 7, Travis, British Sea Power and Mercury Music Prize nominee Richard Hawley since the company took over seven years ago.

With the help of a £56,000 English Heritage grant, it restored the distinctive dome and opened the former Sassoon family mausoleum as a venue for avant garde and independent shows.

Mr George denied the venture had been a failure despite struggling to make a profit.

He said: "It has done well in one respect and brought some brilliant acts to Brighton that would never have happened. It has just become quite difficult to run it as a live music venue.

"I am proud of what we achieved in the restoration of the dome and I am proud of the events which have been put on there."

Chris Edwards and Amanda Blanch, owners of boutique hotel Blanch House, plan to reopen the building in October as the Hanbury Club following a five-week £100,000 renovation.

Fans have said its loss is equivalent to that of the West Pier.

Mr George added: "It was a very tough decision for us to make but times change and we believe the venue will respond well to a new direction. We wish the new operator the best of luck".

The Freebutt, another of Zelgrain's live music venues, is temporarily closed while engineers investigate noise levels.

Mr George is meeting city environmental health officers this week to establish what work needs to be done.