Kalber Leisure's plan to restore Britain's premier art deco hotel to its former glory have turned sour with the decision to put Morecombe's Midland Grand Hotel back on the market.

The hotel was acquired last year by Midland Grand Hotel, part of the Leisure Group UK, whose brand, Kalber Leisure was responsible for the management and operation of the site. Kalber worked closely with English Heritage, Lancaster City Council and Friends of the Midland to secure planning permission for a £10m restoration of the site, which was expected to break even in its third year. But after further investigation, costs were found to exceed the budget, which raised concern among investors. The project has stopped and the hotel's recently opened visitor centre has closed.

'We are deeply disappointed that we are unable to deliver our dream,' said managing director, Mike Baron. Knight Frank will handle the sale.