CAD Divider

Our creative approach to hotel regeneration that is helping to sustain family-run businesses

Mar 6, 2023

By Sally Jones, Architectural Associate

CAD Architects has successfully gained planning permission for the redevelopment of two hotels in Newquay; Sandy Lodge Hotel and Whipsiderry Hotel. In each case CAD Architects were asked to appraise the site and propose redevelopment options that would realise commercial value from the property for reinvestment. Whilst the resulting development proposals differ significantly, being unique to their context and owners’ business requirements, both projects will implement a hybrid model of renewal within the confines of the existing site, using open market housing to fund the regeneration of tourist accommodation.

The Whipsiderry Hotel is a traditional, family-run hotel in a prominent location with stunning views overlooking Porth and out to sea. The hotel itself is an older building, with restricted capacity and smaller bedrooms, which limits its income potential. The local tourism market is seeing increasing demand for high-quality, self-catering holiday accommodation, and much less demand for hotel accommodation of the type currently provided by the Whipsiderry Hotel. This trend is affecting many older hotels in the area, who are finding that the investment that would be required to refurbish their hotel to a contemporary standard is simply not viable. In response, this scheme proposes a new model of tourist accommodation for the business; the development will demolish all existing structures and replace the dated hotel with new detached dwellings that deliver high-quality tourist accommodation funded by the sales income of a complimentary range of open market housing.

The Sandy Lodge Hotel has suffered from underinvestment in recent years due to financial burdens resulting from the size, age and layout of the existing property. Like most tourism businesses, it was also severely affected by the pandemic. The approach proposed by CAD Architects exploits an area of gym and spa facilities, aged and underused, to deliver new terraced townhouses and apartments, whilst also replacing the existing owners’ accommodation. The revenue generated by this residential development, which is currently under construction, will fund reinvestment in the remaining hotel facilities to secure a 3-star rating and ensure the business is more sustainable, safeguarding more than 40 local jobs and preventing Newquay from losing another large hotel.

There are many important advantages to the hybrid approach adopted by both projects:

  • It realises the full commercial value of the site. If no action were taken, the sites would have continued to decline in quality and value. This approach allows the owners to secure an excellent return on investment for their property.
  • It is a powerful funding model. Using the sale of open market housing to fund the development is a much more viable approach than borrowing in order to redevelop the existing hotel.
  • It delivers new homes. Building new homes on the site will contribute in a small way to easing the local housing crisis
  • It creates the tourist accommodation the local market needs. For local tourism to continue to grow, it needs more high-quality accommodation which can provide year-round business, rather than being totally reliant on the peak season.
  • It secures livelihoods and jobs. For the owners, they will have more viable, long-term tourist businesses. This will enable them to continue working in an industry they love and continue to deliver an outstanding customer experience well into the future. At the same time, it will secure jobs throughout the year and help to support the local economy.

We believe that the creative approach to these projects offers an exciting future model for hotel regeneration. Changes in the tourism market are demanding fresh thinking and new approaches, not only in Cornwall but in communities across the UK. At CAD Architects, we are rising to this challenge and developing contemporary solutions that will help breathe new life and new potential into local tourism businesses.

CAD Architects have significant experience in the tourism and leisure sector and we will shortly be announcing an exciting new project, which we are really looking forward to sharing with you.

Contact our expert team of commercial architects today for a no-obligation discussion about your next project. Get in touch at