Plans to demolish a South Wimbledon hotel and replace it with a block of flats have been given the green light.

In September last year, plans to do away with the Phoenix Hotel in Merton Road and replace it with the five storey building were submitted because the business was losing the ability to remain financially viable.

"Pressure from competing incoming national and multi-national hotel chains which have received permission to build bespoke budget hotels had led to a terminal down turn in business," a document attached to the application read.

"This particular area, South Wimbledon, is currently undergoing a period of renewal and transformation from being the ‘shabby’ end of Wimbledon town into the next desirable location for

commuters to the city and West-End.

"New restaurants and shops, often ‘boutiques’, take over buildings which were lying empty or under-used."

In total, 21 new apartments and two houses will be built in place of the 35-year-old hotel.

"Owing to increased provision of hotel bed spaces granted planning permission in the vicinity of the Phoenix Hotel this small family run establishment has become unviable," the document read.

"Guest occupancy rates are at their lowest level ever in 35 years of continuous trading.

"This proposal would represent a significant investment in the local area."

Work on the new flats will need to begin within the next two years.