Mystery surroundds the future of the Royal Norfolk Hotel

The unidentified purchaser is believed to have had a bid accepted for the Royal Norfolk Hotel. A sale is said to be very close, but final contracts have yet to be exchanged.

Ed Belfield, of estate agents Christies and Co, said. "We have got some continuing interest in the hotel, which is good news. We are taking it forward.

"We have had a variety of interest from various different parties, the majority of which is for hotel use.

"It's difficult to say when the sale will be completed, but we are hoping to achieve it as soon as it can be done."

The latest twist in the story of the hotel, which dates back to the 1820s, is a blow to the consortium of local individuals which hoped to take on the iconic seafront building and issue shares for residents to have a stake in the tourism business and safeguard its future.

Steve McVickers, one of the four consortium members, said: "The hotel is about to be sold, though it's not over yet."

The news will disappoint the many local residents who were anxious to acquire shares, priced 50 each, to give themselves a stake in such a historic building and help to safeguard its future.

The amount of time and legal restrictions in organising such a large-scale share issue proved insurmountable for Mr McVickers, Simon and Catherine Mouatt and David Barton.

"It appeared the current hotel owner, Christ for the Nations UK, was under significant pressure from the bank to sell quickly and that pressure was projected on to our fundraising process," said Mr McVickers.

"A public offering to raise money costs money, about ten per cent of the funds raised, and neither us nor the community would stomach that.

"We were caught between a rock and a hard place, wanting to engage with the community in a fashion that was full of integrity but unable to do so because of current fundraising law and regulation.

"You can't break the law or even be perceived to be breaking the law when you are trying to build on a platform of integrity and trust," he said.

The Bognor Regis Community Development company which was formed by the investors to buy the hotel will still remain active to support ethical and social investment in the town through a private fundraising initiative by a firm founded by Mr McVickers.

They remain interested in taking on the hotel if the current deal fails.

The 43-bedroom, three-star hotel on the seafront has been on sale for 1.975m.

It was closed by its owner, Christ for the Nations UK,

on February 28 with the loss of 30 jobs.

The hotel's separate operating company was placed in administration on March 1.

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