A RUNDOWN Pontypool hotel is to be turned into a conference centre with offices and flats.

The four-storey Clarence Hotel - seen as a key site in regenerating the town - has been sold to the Eastern Valley Housing Association who are to spend between £1 million and £1.5 million on the project.

The charity signed the deal last Thursday after six months of secret negotiations with owner Brian Stephens.

A planning application should be submitted in three months and work begin before the end of the year. That should take around 12 months.

This is the latest chapter in the long-running saga of one of the town's most noticeable - and notorious - features.

A succession of owners failed to find a viable use for the building or to halt its physical decline.

EVH Treasurer Steve Brooks said: "There have been promises made by previous owners that have not been made good.

"That building will be refurbished and available for the use of the people of Pontypool and further afield. "This is going to happen," he pledged.

The negotiations were carried out in secret at Mr Stephens' request. As part of the transfer of ownership, Digby's nightclub in the basement was closed after Christmas.

Details of the conversion plan include a 4,000 sq ft conference centre in the basement and 4,500 sq ft of office space on the ground floor and in new build behind the current building. The first and second floors will house 14 social housing flats for rent.

Because the negotiations were carried out in private, Torfaen council was not made aware of the plan until late last week, EVH has been circumspect in sounding out possible tenants.

But Mr Brooks said: "There is a need and demand for these facilities. We have made some queries and we're optimistic we can find tenants."

The scheme will be funded by a mix of social housing grant aid and private finance - bank and building society loans.

Council leader Brian Smith said: "This is delightful news. Congratulations to the board at EVH for their initiative. They will get maximum support from the council."

Mark Gregory, traders' representative on the Pontypool Regeneration committee, said: "This is very positive. It is time some good use was be found for the building."