The Royal Beacon Hotel on The Beacon in Exmouth has now closed permanently, after what the hoteliers call a 'tsunami of rising costs, making the business unsustainable.'

An announcement from Director Keith Richardson says that 'rising costs' in the hospitality sector are to blame for the hotel closing. 

The hotel closed its doors on Monday (September 30) and says it will be transferring all its paying guests to a partner hotel in Torquay. 

In February, the Journal reported that Richardson Hotels, who own the building currently, had put it on the market for £2,500,000.

Richardson Hotels in Devon include, The Grand Hotel, Torquay, Falmouth Lodges, and Abbeysands in Torquay, including the Royal Beacon.

The 52-bedroom hotel, in a partly Grade II listed building. The Royal Beacon on the market Exeter Property Sales company, Savills of Exeter, which praises its 'quiet, elevated position in a Regency terrace' and its 'panoramic views over well-tended gardens and the Devon coastline, across the River Exe to the Dawlish Warren National Nature Reserve'.

In a statement to residents, Mr. Richardson said: "It is with considerable regret that the directors of the Royal Beacon LTD have decided to close the hotel permanently on Monday September 30. 

"All guests booked to stay beyond that date are welcome to transfer their bookings, with no additional cost to The Grand Hotel in Torquay. 

We will ring all guests all our guests to ask what they would like to do. Alternatively we will refund all booking guests requested this coming week.

"My hotel has suffered a tsunami of increased costs along with other all other hospitality businesses. We have got to the point where we cannot sustain our business in this current economic climate.

"We appreciate that this is not the information people want to hear but sadly it is inevitable."