A plan to build four-storey homes could secure the future of a historic Ilkley hotel by generating cash for improvements including a new spa.

Former Victorian hydropathic establishment The Craiglands Hotel, on Cowpasture Road, is “running at an unsustainable level” say planning consultants and is in need of considerable investment.

A planning application to build nine houses on a car park in the grounds and create a spa in the hotel’s basement has been submitted to Bradford Council.

The proposals are to build one block of five houses and another of four. The houses would have three to five bedrooms.

In a statement accompanying the application, planning and development consultancy Pegasus Group says the 19th Century building is a grand and expansive hotel which requires constant upkeep and maintenance.

It said: “In order to remain competitive and secure the long-term future of the Craiglands Hotel significant investment is required to upgrade the hotel facilities.

“The hotel is currently running at an unsustainable level, and is therefore in need of considerable investment which, through residential development of the adjacent car park, will enable improvements and a new spa facility to be provided at the hotel, which in turn will increase occupancy.”

The existing area of hardstanding to the south of the hotel which serves as car parking would be formalised and redesigned to provide 102 spaces for hotel guests.

The 62-bedroom hotel also hosts banquets, conferences, is a wedding venue, and has a restaurant open to non-residents.

Built in 1859, the Craiglands is classed as a key unlisted building within the Ilkley Conservation Area. Previous housing plans, for 14 and 13 homes submitted in 2008 and 2009, were both withdrawn.

Pre-application talks with Bradford Council have taken place since another scheme, for 14 houses, was proposed in 2012.

Issues raised by a planning officer were taken into account when drawing up the most recent plan.

Members of the public can now make representations to the Council on the application.