WORK has started on a multi-million-pound project to replace a landmark building with shops and housing.
Most of the 59-bed Lyndhurst Park Hotel has been demolished to make way for almost 80 homes and three commercial units.
But the hotel's facade has been retained and will be used to provide some of the housing.
Plans submitted by Burry and Knight, part of Hoburne Development, were given the green light by the New Forest National Park Authority (NPA) last year.
The scheme comprises a mixture of townhouses and luxury apartments.
A Hoburne Development spokesperson said: "Following completion of the demolition, work has now commenced on the drainage and infrastructure of phase one of the build."
READ MORE: Plan to transform Lyndhurst Park Hotel site given green light by National Park Authority
Chris Willsher, chairman of Lyndhurst Parish Council, said most of the "unsightly" hotel building had been demolished.
He added: "The foundations for the first stage of the build are well underway and have reached above ground level. This part of the development is likely to be the first element visible above the protective hoardings.
"Only the historic elements of the former hotel remain in situ, pending future refurbishment to reflect their original grandeur.
"The parish council expects to see the development grow in accordance with the agreed plans, resulting in a high-quality range of dwellings set in a tree-lined landscape.
"We look forward to the return of a prestigious and impressive 'gateway' feature to the village.
"There's inevitably an impact on local residents from such a large-scale development. To date, the developers have reduced any such impact, keeping noise and disruption to the minimum possible."
District councillor Hilary Brand also welcomed the progress made so far.
She said: "I believe Lyndhurst residents are generally pleased the development is moving ahead, mainly due to the hotel being left to decay over the last few years and causing an eyesore.
"It'll be good for the village if families move in as the school needs more children."
READ MORE: Victorian Society opposes plan to bulldoze hotel with links to famous author
In 1912 the hotel was redesigned with the help of Sir Arthur Conan Doyle, creator of Sherlock Holmes, who was a frequent visitor to the New Forest.
The building closed in 2014 and was soon branded an eyesore by villagers.
Plans to redevelop the site sparked 63 letters of objection. Critics claimed that a "significant portion" of Conan Doyle's design would be lost. They also said the proposed development would be out of character.
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