SPECULATION is mounting that plans to build a multi-million- pound hotel for international business travellers alongside Southampton International Airport have been scrapped.

Eastleigh planners gave the green light to a flagship scheme for a luxury 120-bed hotel on land between the Royal Mail sorting office and the M27 in November 1999.

Premier Hotels were signed to develop and run the hotel under the brand name of the Howard Johnson Hotel chain, which saw the Eastleigh development as a flagship enterprise to create a European empire to match its operations in North America.

Last January, a Premier Hotels spokesman told the Daily Echo it was hoped building work would get under way by the middle or end of February 2001.

But since then Premier has ceased trading and, now, Eastleigh council has received a planning application to build a luxury car showroom on the site.

A council spokesman said the scheme from Pentagon Ltd would see the relocation of a Mercedes dealership from Bishopstoke Road, Eastleigh, to the site at the airport which already had planning approval for a hotel.

The car showrooms plus workshops would total 2,266 square metres.

Currently, a large 'hotel development' sign dominates the frontage of the site.

But a spokesman for agents Commercial Management Ltd said he felt unable to comment on the future of the land.

The spokesman referred the Daily Echo to Gazeley Properties which controls the site, but the company's public relations spokeswoman failed to return telephone calls.

Originally, the hotel development envisaged a second phase construction of a pub with a restaurant and the whole scheme was heralded as a landmark building project for Eastleigh.

Eastleigh council leader Keith House said: "Our aim is still very much to secure a hotel on this site."

But he added: "That clearly requires a new operator and a new application.

The concept of putting a car sales operation on that site is not one that brings me any sense of enthusiasm at all."

A council spokesman said the Eastleigh local area committee would determine the motor dealership application - with March 19 being the earliest possible date.