OLD Town could soon lose part of one of its most historic landmarks.

Unable to battle against fierce competition from big hotel chains, the Goddard Arms Hotel has applied for permission to reduce in size and give part of the site over to houses.

Plans have been submitted to Swindon Council to develop the site and make way for 43 houses.

But developers say that the homes will be built in keeping with the 18th Century former coaching inn.

The Goddard Arms Hotel, owned by Management Services International is the oldest hotel in Old Town.

It says it has been struggling to compete with the larger, modern hotels, which provide big banqueting facilities, easy access to the motorway and better parking facilities on the outskirts of Swindon.

The developers say that because the hotel, which currently boasts 65 bedrooms, sits on one of the most important landmark sites in the area any changes will have to be made sympathetically.

But the ivy-clad hotel, pictured, is not going to disappear from the Old Town landscape altogether.

Part of the hotel will still remain and the attractive Georgian frontage and internal features will be retained as part of the project.

The newly-refurbished hotel would provide 10 bedrooms with a new contemporary bar and restaurant.

Developers, Old Town Swindon Limited, based in London, say that this will help to build up community spirit in Old Town by attracting families.

There would be 43 family homes built on the site.

Designed as traditional town houses, local materials would be used to ensure a sympathetic development with brick-paved roads and extensive landscaping together with improvements to the existing access.

The applicant Howard Morris, from Old Town Swindon Ltd, said: "I am pleased to announce that we have submitted applications to Swindon Council for the rationalisation of the hotel, to enable it to compete in the 21st Century, together with badly needed family housing.

"The proposals aim to continue the ongoing regeneration of the Old Town District Centre."

But before any work continue the scheme must get the go-ahead by the council's planning committee.