Bid to turn iconic North Devon hotel into private house after it failed to sell

A bid has been lodged to change the former Broomhill art hotel into a private residence after it failed to sell on the open market as a going concern.

Current owner NAKO Modular, a development company, has submitted a planning application to North Devon Council for a change of use from a hotel to a private dwelling.

The estate originally went on the market in February 2025 for £1.15million and this was reduced to £975,000 in August, but so far the property near Muddiford has only received two offers, both well below the asking price.

Above: Broomhill hotel would need a fair amount of renovation work to reopen it as a business, according to potential buyers who were not willing to pay the asking price.

The estate, including the hotel with seven art-house film themed rooms, a sculpture garden which contained 300 works of art and a fine dining 150-cover restaurant was previously owned by Americans Alex and Michele Kleiner.

READ MORE: Quirky hotel and 18-acre estate near Barnstaple back on the market a year after being sold

They bought in 2020 from Dutch couple Rinus and Aniet van de Sande, who ran it for many years and held the prestigious National Sculpture Prize contest in the estate grounds.

The Kleiners were forced to sell in 2024, citing a lack of government support during the pandemic and escalating costs.

The current planning application contains letters from property experts Savills and Carter Jones spelled out how it had been tricky to sell the site as a going concern.

They said that offers on the property to run it as a commercial venture were ‘significantly below the guide price’ due to the level of works required to reinstate the property into a condition in which it could trade.

READ NEXT: Art hotel near Barnstaple sold to new owners

An offer from a residential buyer was also well below the guide price, due to the risk around obtaining change of use from the planning authority.

“The general response thus far has suggested that there is no interest for Broomhill Estate, subject to its current planning use, at a level that is acceptable to our client,” said the Savills letter, which added that only two offers had come from 56 enquiries.

The letter from leisure property specialist Carter Jonas added: “The main feedback from parties has been the poor state of repair of the property.

“The majority of purchasers were from outside of the area and were looking to live on site and run a business and develop the grounds for self-catering accommodation.”

When MAKO Modular purchased Broomhill in July 2024, a spokesperson said at the time: “Our team is eager to enhance an already impressive offering and reopen the estate for hotel guests and the community to enjoy once again.

“Over the next few months, we plan to introduce a series of thoughtful upgrades and modern amenities across the property, creating an elevated guest experience.”

It is not known why the company chose to sell the property again some seven months later.

The planning application to change the use of Broomhill to a private residence is now in the consultation period and North Devon Council will decided it at a later date.