The future of one of Clacton's oldest established hotels is in doubt after it was sold at auction for more than £200,000.
Hoteliers in the town fear that The Chantry, which has 24 rooms, could be turned into a nursing home.
Terry McKean, chairman of Tendring's hotel and guesthouse association, said if the builidng was turned over to another use it would be a major blow to the town's holiday trade. And he vowed the association would fight any plans that might be in the pipeline.
"Unlike many other seaside resorts, business in Clacton is picking up and I know The Chantry had a large number of bookings for the season - and a number of coach parties," he said.
Mr McKean said the association was preparing a campaign and writing to Tendring Council objecting to a change of use for the hotel in Orwell Road, just off the town's seafront.
Simon Mellish, a partner at Dedman Property Services in Southend which handled the auction, confirmed the Chantry had been sold for £207,500.
He said contracts had been exchanged and were due to be completed the middle of next month.
He said: "I cannot disclose the new owners without their permission but I know there is a lot of speculation about what will happen to it and we have had a number of calls about it."
Mike Bateson, head of economic development at Tendring Council, said the council would be keeping a close eye on the situation.
"We are aware the Chantry has been sold and are liaising closely with the hotel association," he said.
"At present we have no knowledge of the new owners intentions and no formal planning application has been lodged with the council."
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