PREMIER Inns have pulled out of the £60m New Brighton redevelopment, the company confirmed last night.

The budget hotel operator had been lined up by developers Neptune for a key part of the scheme which has already seen the Floral Pavilion Theatre redeveloped to widespread acclaim.

Neptune has outline planning approval for the second phase of their ambitious redevelopment of the Wirral seaside town, won after a public inquiry threw out the original scheme after some fierce opposition from locals.

But the company last night said they had another, rival hotel chain, lined up to take the place of Premier Inns.

The detailed plans for the scheme in which supermarket Morrisons will be an anchor are expected to be submitted to council planners soon, with revised hotel plans.

It will also include a cinema, health centre, bars and restaurants. Construction will take 18 months.

A spokesperson for Whitbread said: “We have revised our expansion plans in view of the economic downturn and, as a result, we have decided to withdraw our plans for bringing Premier Inn to New Brighton at this time.