DEVELOPERS have abandoned a scheme to transform a city centre car park into a four-star hotel.

Thistle Hotels had gained planning permission to pull down the 255-space car park in the former Presto building on the corner of Tanner Row and George Hudson Street, in York.

But the project has now been scrapped, prompting fears that hotels were losing interest in the city because of its parking problems.

It emerged last week that a spate of car park closures would mean the loss of more than 1,000 parking spaces - and city leaders fear this may be behind the scheme's collapse.

Gillian Cruddas, chief executive of York Tourism Bureau, said: "I had heard that they had pulled out and that is disappointing.

"I think the car parking issue may have something to do with it. City centre hotel developers are getting a little bit worried about where their guests are going to park and, if they're not allowed parking spaces with their hotels, how are they going to attract guests?"

Recent hotels built in the city which have not included parking are the Travelodge, the Quality Hotel, the Queen's Hotel and the Premier Hotel.