The owner of Shrewsbury’s Stew said today that appealing against a decision to reject plans to demolish the landmark and build a £1.65 million hotel was an option.

Borough councillors turned down proposals to bulldoze the riverside building in Frankwell to make way for a 25-bedroom hotel at a meeting on Tuesday, following recommendations from the authority’s planning officers.

Councillors originally gave the scheme the go-ahead in December, but the planning committee was asked to reconsider.

Gareth Leese, owner of the building, said he was “very disappointed” at the decision.

“I struggle to see how councillors cannot recognise the economic benefits of the hotel to the town,” he said.

“We are still considering all the options and appeal is obviously an option. We have got a very robust case which we feel will stand up to the scrutiny of an inspector.”

He added the company was now taking advice from its solicitors before making a decision.

Plans to demolish The Stew sparked a wave of protests from people who want it restored as a centre celebrating the river trade.

Campaigners said they were delighted with the decision and hoped a compromise could be found for the future use of the building.

Ian Lacey said: “We have saved the building temporarily but it needs to be restored and unfortunately it has been sold to someone who is hell bent on knocking it down. The best hope is some compromise. It is part of our heritage and no one wants to see it go.”

And Robert Bullard said: “I’m sure we haven’t seen the last of this story. Mr Leese seems very keen to develop his plans and he may appeal.”

He added: “If he is willing there are a lot of compromises and I’m sure councillors will entertain them.”

By Sarah Bullock