Secondhotelplan for Butlins

The Observer understands that the directors of the holiday firm's parent company, Bourne Leisure, are about to meet to sanction the massive project.

The meeting with the crucial vote is set to take place in the middle of next month. Bourne Leisure is keen to replicate the success of the first Shoreline hotel.

Its reception among guests has delighted the company. Satisfaction ratings are running at 98 per cent of those who stay in the 160 rooms on the prime seafront site within the holiday resort.

This week saw the prospect of a second Shoreline being built in Bognor, at a cost likely to exceed 10m, move much closer.

Butlins site owner Arun District Council agreed in principle to sell the land to Bourne Leisure.

Final talks to agree the value for the sale still have to be held between the council and the company. But the members of Arun's cabinet agreed behind closed doors on Monday to go ahead with the deal if the negotiations go well.

The council will receive the, undisclosed, disposal value of a new 125-year lease for the 58-acre site. The granting of the lease was agreed by the cabinet at the same meeting. This replaces the lease which had existed since Sir Billy Butlin's proposals for a holiday camp in 1960.

By effectively more than doubling the remaining length of the lease, as recommended by the District Valuer financial watchdog, to increase the rental value of the land, the decision means the council is in line to receive more money from the sale.

Bourne Leisure wants to transform the Bognor site within five years and the company wants the security of the land ownership to be able to raise the finance to fund the improvements.

One of Bognor Regis Chamber of Commerce's vice chairmen, Paul Wells, welcomed the prospect of a second Shoreline. 'Any improvements that Butlins makes on their site in Bognor has to be good for the town.

'It's good that Butlins, having found their first hotel is such a success, want to build another one here,' he said.

'Adding a second hotel is positive from their visitors' point of view as well as the point of view of the local economy.'

The Shoreline hotel opened in August 2005 at a cost of 10m. Bourne Leisure decided to depart from the traditional Butlins image of seaside chalets to create a stylish design with a blend of contemporary and sophisticated accommondation to update its visitor's experiences.

The result has been spectacular. The hotel's first full year saw it often full with up to 480 guests a week enjoying its modern surroundings.

Building the hotel enforced Bognor's position as the flagship site of the three Butlins holiday resorts around England. Adding a second hotel will confirm that number one role.

That expected vote of confidence in Bognor's future is seen as playing a major role in the town's economic regeneration.

Richard McMann, who leads the town's regeneration task force, said: 'A second hotel to build on the success of the first is good news for Bognor. Putting in a second hotel shows a confidence from one of the town's major employers to improve and enhance what they have to offer.

'Bognor needs good quality accommodation if it's going to attract more visitors who are going to spend more money in the town.

'Another hotel will give more people the chance to talk up their stay in Butlins rather than talk down about it. Most people would not regard the current chalets as the best part about Butlins.'

It is likely the latest hotel will be built on the site of the original reception building and the pond just inland from the existing hotel.

A planning application for the new building will need to be approved by the district council before building work can start.

No one from Bourne Leisure was prepared to comment about the hotel plans this week.