Plans have been revealed to convert the unfinished block of flats in Windsor Street to a 59 bedroom budget hotel with an application submitted to Melton Council after the company behind the building, which has been empty for a year, went bust.

Shelagh Core, town centre manager, said: "We are in desperate need for more town centre accommodation space. A new hotel will bring more visitors into the town and would be a great boost for tourism.

"We frequently find every bed in Melton is taken when there is an event on. For the market town convention we had to use Oakham and Rutland. This will be fantastic for Melton.

"I don't think it will be in conflict with Quorn Lodge and Sysonby Knoll hotels as they offer something different."

Tim Brown, who runs the Melton Cheeseboard in Windsor Street, said: "Only last week I was wishing somebody would do something with that building, it has been a complete eyesore.

"From my perspective anything is better than it is now and a hotel would be great.

"It should bring more visitors and draw them into the town centre."

And Nigel Keep, owner of 54a King Street cafe, agreed. He said: "It's great news, absolutely fantastic. It will create jobs, bring life to the area and bring more people into the town."

In the planning documents the company behind the scheme is named only as a national operator, but it is thought to be Travelodge, although the firm refused to be drawn on the Windsor Street development.

Paul Harvey, a managing director at the chain, said: "We do have a requirement in the Melton area but we are not in a position to confirm anything else at present."

But not everybody remains as upbeat about the proposals.

Mark Barnes, chairman of Melton Council's development committee, said: "I think it is something Melton needs, but I would have thought there could be problem with highways and access.

"I wish them well and look forward to considering the plans in full."

And the retail units on the ground floor are still empty and will not form part of the hotel and Mrs Core said there had been no interest shown in the shops.

Work on Windsor House stopped about this time last year, but the developers refused to speak to the Melton Times.

The company has now gone into receivership and it is hoped the building will be converted to a hotel by the end of next year.

Plans include putting a reception and a vending area in an extension in the underground car park, along with two family rooms while the rest of the beds will be on the upper three storeys.

The hotel will not include a bar or restaurant further boosting the economy of Melton.