Fears for high street trade as Newport's only town centre hotel to become flats

But now Marston's, which owns the pub, has confirmed it is being sold and the developer intends to use it for residential purposes.

Jeremy Eaton, spokesman for Marston's said: "We can confirm that contracts have been exchanged on the Royal Victoria in Newport.

"Completion is planned for December 21 and the purchaser intends to develop the site for residential use."

Town bosses say they are are concerned about the loss of Newport's only hotel.

Patrick Beech, chairman of the town's chamber of commerce, said he is sad to see the hotel close down for good as it was the "flagship" place for events in Newport.

He said: "As a business owner in Newport for many years I am upset to see the Royal Victoria cease trading.

"Years ago it was the flagship of the town for social, business, wedding receptions and other big events.

"Today we have an issue as we have few bed and breakfasts in the centre of town and being on a tourist route on the A41, tourists have no alternative than go to Premier Inn or other towns.

"But then our High Street doesn't benefit from the footfall. I am asked on a regular basis from executives and workers where they can stay for the night and I then have to direct them out of the street."

Lee Jakeman, town clerk, said: "The site has been the subject of much speculation for many years, and there are a number of competing users for the property.

"However, I would suggest there was some clarity one way or another about what the site future will be."

Councillor Eric Carter, chairman of the Newport Regeneration Partnership, said he thinks the town has been let down by Marston's. "This is a terrible loss for the town and I believe Marston's have let the people of the town down," he said. "It is an iconic building and it will be sad to see it no longer being used."