An independent consultants’ report into the viability of re-converting The Three Cups Hotel in Lyme Regis into a hotel has found that the costs of re-conversion are so large that the scheme is uneconomic. Palmers Brewery, which owns The Three Cups, will now consult widely with the local community to find a way forward.

The independent report into the viability of reconverting The Three Cups in Lyme Regis back into a working hotel will be published at the end of January, said Palmers Brewery. The report from hospitality specialists TRI Consulting will assess the market opportunity and financial viability of re-opening The Three Cups as a hotel.