Angry hotel and guest house owners in Helston gathered last week to discuss a plan of action against a planning application to build 50 bedroom budget hotel and pub on the outskirts of the town.

The meeting was organised by owners of the Gwealdues Hotel after they heard about the plans to build the hotel and pub on land opposite the new housing estate under construction at An Henlys, off Clodgey Lane.

The Whitbread Group has submitted the application to build the hotel, along with an associated restaurant and bar and parking for 105 cars.

Elaine Waddoups, who owns the Gwealdues Hotel with husband David, said: "Competition is good, but this is too much. It is the size of it that worries us and it will effect us and many other businesses in the town. Anything with more than 30 bedrooms would be detrimental to Helston."

Around nine owners of local hotels and guest houses gathered at the meeting to view the plans and discuss their potential impact on the town.

Many of the people at the meeting claimed they did not know anything about the plans until they saw it in the newspapers.

David Waddoups added: "We didn't know anything about it and there has been no consultation. If this is going to be such a good thing for Helston, why has it been kept a secret?"

Mike Wadley, owner of the Strathallan Guest House in Helston, said: "Businesses like ours rely on the one nighters who come and stay during the quieter times of the year and this new hotel will take them away from us. They will be able to offer lower rates and price us out of the market. There is no need for this in the town at all and people will see it and not bother to go anywhere else.

"If it goes ahead it will be the beginning of the end and Helston will die."

Sarah Payne, of the Lyndale Cottage Guest House, added: "We offer a more personal and welcoming atmosphere, we buy local produce where possible but these big companies don't, they buy in bulk and they can offer things cheaper so will all eventually go out of business."

Despite their concerns the group could not find any planning grounds on which to oppose the plans but their aim is to reduce the size of the development.

David Waddoups said: "We cant get it stopped but we need to try and limit the size of it. We need to act as a group and make our views known to the town council.

Whitbread's proposals are for a Premier Travel Inn and Brewers Fayre restaurant and public house on the site, which is owned by Helston developer David Martin.

Two years ago, Mr Martin sought outline planning permission from Kerrier district council for a 30-bedroom travel lodge and restaurant on the site.

At the time, Mr Martin said the lodge would offer a different kind of accommodation to that provided by existing hotels and guesthouses in the area. He also said it would create up to 40 full and part-time jobs.

The scheme was eventually "called in" by the Government Office of the South West, but later referred back to the district council for a decision.

The new proposal revolves around a two-storey building, with 24-hour reception, domestic accommodation for a manager and family and posts for two "live-in" assistant managers.