A failing Bovey Tracey hotel could be converted into eight homes if district planners give the scheme the go ahead.

The 22-bedroom Coombe Cross Hotel (left) went into receivership in 2010 and in the summer of 2011 lost £25,000.

It has continued to be unprofitable despite efforts to revive the business and a change of ownership in June 2012.

The losses this year since April exceed £36,000.

Conversion to a mix of two, three and four-bedroom dwellings would rob the town of tourist accommodation, a function room, swimming pool and gym.