THE owners of The Old Rectory Country Hotel, in Crudwell, have scotched rumours that they are about to move.

An application to change the use of the building from a hotel to a house was received by district planners two weeks ago and sparked rumours that Derek and Karen Woods were planning to sell up.

But Mr Woods, 61, who took over the hotel in April 2000, said that he and his wife were happy and had no intention of selling up.

"I can categorically say that we have no intention of moving out. The business is doing very well. Each year our bookings go up. This year they are up 18 per cent."

Mr Woods said that he had been advised by his bank to apply for change of use to increase the property's value.

He said he wanted to continue the progress made over the last two years which resulted in the hotel's inclusion in a list of the world's 50 top weekend breaks in the Independent newspaper.

"In the last three years we have gone from a zero rating in the hotel and restaurant to three stars and three rosettes," he said.