Multi-million-pound plans for a hotel and nightclub in Southampton city centre have been rejected more than three years after being put forward.

The proposal for the 40-bed boutique hotel, hair and beauty salon, nightclub, wine bar and restaurant had won the backing of planners but it has now fallen through.

Developers behind the £7million scheme for the former Barclays Bank site in High Street have failed to reach a legal agreement with the local authority.

Manoj Kumar submitted the application in October 2020 and an officer report published in May 2022 said the scheme could be granted subject to securing a commitment to conditions.

These requirements included site-specific transport works and a financial contribution for community safety initiatives within the city centre.

The report said: “Although this proposal does not appear to be aligned with a particular hotel operator, the planning submission is supported by information to demonstrate this developer-led hotel proposal will not lead to over-supply of budget and three-star accommodation.

“The applicant confirms that the boutique hotel market in Southampton only accounts for 2.1 per cent of hotel rooms, with the city centre hotel supply being primarily a mix of budget, three and four-star hotels.”

A decision notice published on April 15, 2024, said the application had been refused after failing to secure a section 106 legal agreement, which would have seen the developer hand over funds to the council for improvements to the local area.

When the scheme was submitted, Mr Kumar said the new luxury boutique hotel would be for guests who were looking for a “fun, cosy and comfortable stay”.

The name of the hotel operator was never disclosed in the plan, which included a six-storey rear extension towards Castle Way.

City leaders, including Southampton Itchen MP Royston Smith and Bargate ward councillors, supported the proposed investment in the city at the time.

The Grade II-listed building is occupied by Bargate Jewellers.