Premier Inn will not be building a hotel on the planned Bay Retail Park in Morecambe.
It has only just been revealed by the hotel chain that they are withdrawing from the site.
Nick Johnston, Acquisitions Manager for Premier Inn said: “Due to unforeseen circumstances, in September 2016 we reached an amicable agreement with the developer to withdraw from this site and we understand the developer is in discussions with alternative leisure occupiers.
“Premier Inn will continue to consider locations in Morecambe as and when the right site becomes available.”
Developers Opus North are not currently available for comment.
Work was expected to start on the Bay Shopping Park in May 2016.
The Premier Inn 60-bedroom hotel and pub-restaurant was due to replace the Ranch House pub which closed in January 2016.
The Polo Tower will also be demolished once a contractor is appointed.
In July 2015, Opus North confirmed they had been in talks with B&M Bargains and TK Maxx.
The firm, in partnership with site owners Morrisons, had aimed to start work in autumn 2015.
But in September 2015, they said “practical hurdles” had slowed down talks with retailers.
Telecoms giant EE (formerly Orange) were also using the 168ft Polo tube as a mast but the licence was due to expire at the end of January 2016.
Planning permission was granted for the new shopping park, to include shops, restaurants and more than 300 car parking spaces, in November 2014.