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Two Cornish hotels are to undergo a major redevelopment which will see new residential housing built at the sites to fund new holiday accommodation.

Truro-based CAD Architects has secured planning approval for the transformations of the Whipsiderry Hotel and Sandy Lodge in tourism hotspot Newquay.

The Whipsiderry Hotel building will be replaced with four luxury self-catering holiday units alongside six residential houses, five of which will be sold on the open market and one retained as owners’ accommodation.

Sandy Lodge, which is currently under construction, will deliver six apartments and five terraced townhouses, one of which will be lived in by the owners of the hotel. The sale of these dwellings will fund a programme of investment to upgrade the facilities in the existing hotel.

CAD said its proposals to pay for the new accommodation at both hotels through the sale of open market housing helped solve “a number of issues”.

Managing director Mark Dawes said: “Firstly, the development secures future income for the hotel owners and means that jobs will be retained and created on the site.

“Secondly, it enables the business to pivot into one of the fastest growing sectors in the º£½ÇÊÓƵ tourism market – high quality, self-catering accommodation that meets the luxury expectations of today’s visitors. This will help consolidate Newquay’s position as a leading holiday destination.

“And thirdly, building new homes on the site will contribute in a small way to easing the local housing crisis. It is a win-win solution bringing benefits to the owners, staff, local community and the local economy.”