A POPULAR family-run hotel in York has closed down after 56 years in business.

Now the owner of the Granby Lodge Hotel, in Scarcroft Road, is preparing to go ahead with his plan to convert the property into 22 new homes.

The hotel was first opened in 1945 by Mary Jackson, who passed the thriving business on to her son, Michael, in 1968 when she retired.

In 1975 the hotel began its first package deals in an attempt to lure the Scots to York for New Year celebrations, and the idea became so popular that coachloads of people would descend on the city.

Mr Jackson eventually sold the business to Ralph and Elaine Magee, who live near Easingwold and run a company called Broadacre Universal Marketing, about a year ago.

Mr Magee said he was sad that the hotel had closed down, but he did not have the resources to bring it up to the standard that most visitors, and new legislation, expected.

He said: "The hotel had its moments, in fact the last coach pulled out on the morning we shut.

"It is sad, a lot of staff had worked there for a long time and I'm sorry to see them go."

Planning permission to carry out the major conversion work on the building and create 22 apartments was granted in May. Mr Magee said it was a prime site and he wanted to take his time over the project, therefore there was no fixed date for the work to take place.

Shara Ross, chairman of the York Hospitality Association, said the constant need for investment in old buildings caused a strain on many businesses.

She said: "It's always sad when a hotel closes, especially one that has been running for many years.

"But I know there is a shortage of city centre accommodation and it's nice that they will be able to use an older property and regenerate it rather than rebuild."

Updated: 11:05 Saturday, November 03, 2001