A PROMINENT site in the centre of a Lake District honeypot looks set to become one of the first developments for a newly-formed joint venture company.

Award-winning Kendal-based Robert Hughes Ltd and Maple Grove Developments have joined forces to form the new company, called Applethwaite.

The company has already agreed a seven-figure deal to buy the Royal Hotel in Bowness, which closed last week.

The company plans to convert the hotel into a mixed commercial and residential scheme. Planning consent already exists for a food and beverage and retail use on the lower floors, with a residential scheme on the upper floors.

Robert Hughes Ltd managing director Robert Hughes said the company hopeD to secure some changes to the consent from Lake District planners.

"The two approvals that already exist are both exciting developments. We want to see if we can improve on those to provide something which is rather tasty in the centre of Bowness."

The two firms behind Applethwaite, due to be officially launched today at the Royal Windermere Yacht Club, say the new development company will use their combined talents to generate niche residential and mixed residential and commercial schemes in the region.

Applethwaite has also acquired Miller House in the centre of Preston. Plans for the ornate Victorian shopping arcade will see its upper three floors converted into 30 luxury apartments. The ground floor arcade will be retained as an investment by Maple Grove.

Jim Carter, managing director of Maple Grove Developments, said Applethwaite was a "fantastic opportunity" to combine the expertise of two companies to develop "high calibre" developments throughout the North West.

"The fusion of Robert Hughes' residential experience and Maple Grove's long-standing development expertise will enable us to look at new and exciting opportunities."

Mr Hughes commented: "We Robert Hughes Ltd will continue to develop quality housing projects in this area as before, but this new venture allows us to widen our horizons beyond the Lake District."

As part of the Eric Wright Group, Maple Grove specialises in commercial schemes throughout the north of England. Its flagship development in Kendal is Wainwright's Yard, featuring a new Booths store, town piazza, apartments and retail and office units. The scheme is due to open at the end of November.

Robert Hughes Ltd specialises in converting redundant buildings into quality homes, in and around the Lake District. The firm's latest development was at Hampsfield House in Grange-over-Sands, a Victorian mansion converted into ten apartments.

The firm, which earned a commendation in the Customer First Awards for house builders, as reported in Business Gazette last week, is currently building 14 waterfront houses at Windermere Marina.