At long last, there appears to be some 'good news' about one of the most controversial sites in Tenby.

The Observer has been told that a hotel operator is keen to take over the 68-bed hotel planned for the Royal Gatehouse Hotel.

Terry Melia, of Cardiff-based E. J. Hales, to whom all enquiries about the development are now directed, said: "Negotiations are very well advanced with a hotel operator to take out the hotel bed space.

"We hope to make progress in the coming weeks and have some more positive news to announce soon."

In addition to the hotel element, the development has permission for 39 apartments and three commercial units.

Mr. Melia also explained that any cinema element was unlikely.

"Nobody is interested," he told us. "The feedback we are getting from our operators is it is not viable."

However, Mr. Melia said there was interest in the building for 'a variety of other types of use'.

"We need the hotel operator to commit first, then the others will follow," he added.

When asked about the development, Mr. Graham Fry declined to comment.