Plans also include improvements to nearby Castle Street Gardens
Plans have been submitted for a major redevelopment on Peel’s East Quay, which would see a derelict former garage and showroom transformed into a hotel, flats, restaurant and spa.
Zaln Limited's application proposes a 21-bedroom hotel alongside nine apartments on the long-vacant waterfront site.
Developers say the scheme would create a new visitor destination while complementing existing businesses in the town.
The project would also include improvements to nearby Castle Street Gardens.
The applicants describe the current site as being in poor condition and say the redevelopment would help revive a prominent section of the harbour frontage.
Their vision is to create 'a 21 bed boutique hotel, restaurant, café/bar, spa/gym and 9 high-quality apartments', helping to attract visitors and investment to Peel.
Designers say the proposed building has been inspired by Peel’s maritime and industrial heritage.
The plans feature a warehouse-style appearance with pitched roofs, brick facades and stepped rooflines intended to reflect the character of the working harbour.
The proposals also include off-site parking within 350 metres of the site and the demolition of the existing buildings.
Improvements to Castle Street Gardens would include better accessibility, biodiversity enhancements and measures aimed at reducing antisocial behaviour.
Zaln Limited's application says it has agreed to a commuted sum in lieu of providing affordable housing 'due to the nature of the proposed development'.

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