AN 'eyesore' building in Pontypool could be transformed into a four-star hotel. The owner of the derelict Clarence Hotel is in talks with developers who aim to buy the building and re-open it as a hotel by the end of the year.

The building - des-cribed in a report to Torfaen council's economic development scrutiny committee as "a key eyesore at the entrance to Pontypool" - forms a major part of the town's regeneration.

In recent months, negotiations between owner Brian Stephens and the council faltered, when Mr Stephens wanted to buy an adjoining plot of land at a nominal price to create a car park, in exchange for carrying out renovations to the front of the hotel.

But the authority rejected the amount offered and demanded a guarantee that the rest of the building would be renovated.

That led to the authority considering making a compulsory purchase order (CPO) to buy the hotel and prevent it falling further into disrepair. Council staff feared time was running out for redevelopment.

But the report at the meeting stated: "A third party has now approached the council and is negotiating with the owner of the Clarence Hotel with the aim of it being refurbished and opening as a four-star hotel by the end of the year."

The report also confirmed the council was still considering the CPO should negotiations fail, the basis for which will be a consultants' report due to be made public at the end of this month.

Mr Stephens and council officers all declined to comment further and the firm involved has not been named.

However, director for the environment Andy Fretter confirmed there was interest in buying the Clarence for use as a hotel.

Work started in March on a study into the future of the whole Clarence Street area with a view to establishing it as a 'gateway to Pontypool'.