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The future of the world-famous Gleneagles Hotel in Torquay remains uncertain after councillors rejected a plan to convert it into a retirement home.

John Cleese based his iconic sitcom, Fawlty Towers, on the hotel after staying there with the Monty Python team in the 1973.

In fact, former owner Donald Sinclair was said to be the inspiration for erratic boss Basil Fawlty.

The future of the famous Gleneagles Hotel in Torquay remains uncertain after being forced to close for winter

John Cleese based his sitcom, Fawlty Towers, off of the property after staying there in 1973

Councillors were told at a meeting this week the hotel had ceased trading last month.

A report said the premises were currently vacant and would remain so after owners Oceana Hotels had been unable to find an alternative buyer.

A plan by Churchill Retirement Living to turn it into 36 retirement homes was rejected after councillors criticised the design as bulky and lacking character and distinctiveness.

Kevin Wood, managing director of Oceana Hotels, said they had hoped for a positive decision from planners, but would now look at their options which could include re-opening at Easter.

Staff at the venue have been given the choice to transfer to the group's other hotels in Bournemouth.

The premises are currently vacant and owner, Oceana Hotels, have been unable to find a new buyer

The hotel always closes in winter for a varying amount of time - and it's hoped it may re-open for Easter 

Mr Wood said: 'We always close it for winter for a varying amount of time, sometimes for a month, sometimes two weeks.

'It is the slackest period of the year and it depends on what business there is in town.

'We have found if we stay open, we don't make money. We are due to reopen for Easter.

'Staff were told in early December and we offered to transfer everyone to our Bournemouth hotels.

'It is a difficult location to run a hotel being a mainly residential area and we have tried our best.

'I think most of the residents are happy to have redevelopment here.'

It is said that the hotel's former owner was the inspiration behind the character of Basil Fawlty

Prunella Scales, who played Cybil Fawlty, celebrated the world-famous hotel's revamp in 2006

The proposal for the retirement home was for one- and two-bedroom apartments, for those aged 60 and above, a communal owners' lounge, a guest suite and a lodge manager's office.

Simon McFarlane, speaking on behalf of Churchill Retirement Living, told councillors that the design plans would be an improvement on the existing hotel.

The company could amend and resubmit its application or appeal the council's decision.

But Carolyn Custerson, chief executive of the English Riviera Tourism Company, said there was still some hope that the hotel could yet flourish.

She said: 'With the turnaround in visitor numbers and with more marketing and some modernisation, I believe the Gleneagles could once again be a successful three- to four-star, boutique-style hotel.'