Pub giant J. D. Wetherspoon has confirmed this week that it is 'very keen' on Tenby and is looking at the town.

As work resumes on the new development at the former Royal Gatehouse Hotel site following the festive break, the Observer understands the company is interested in the former Royal Playhouse Cinema, although this is unconfirmed.

"We do not comment on individual sites," said a spokesman for J. D. Wetherspoon.