The hotel was to be built as part of the Buckshaw Link business park but developer Helioslough Ltd has said interest from a potential business partner has died down.

It was to be built on a 1.2 acre site off Buckshaw Avenue, next to the Bobbin Mill, and a proposed petrol station, which is yet to be built.

Rob Trevor, development manager at Helioslough, said: "The credit crisis and banking crisis have had a big impact on the property market.

"The good news is that all of our developments at Buckshaw Village were completed before this took effect.

"The interest in the hotel development as part of Buckshaw Link Phase 3 has slowed down. We are still talking to a hotel company, however, they are not minded to go ahead at this stage because of the economic climate."

He added: "Had the banking crisis happened a couple of years earlier, a lot less space would be available for businesses in Chorley and we are not planning to develop any more business space at the moment.

"In the Buckshaw Link development there are still 22 buildings available, ranging in size from 7,000 sq ft to 42,000 sq ft.

"Chorley is a very good place to do for business and, with our developments, we offer businesses the opportunity to come here."

Helioslough also built the Revolution business park on a 125 acre site.

Gary Devine, chairman of Buckshaw Village Community Association, said: "We are disappointed that it's not happening, but people are probably more concerned about mortgages and other financial implications in the current economic climate.

"It's a shame that the hotel is not being built because it would have brought more employment to the area.

"Residents wouldn't have used it but it would have been another addition to Buckshaw Village.

"I can understand why the company is not wanting to build a hotel at this time but it doesn't mean that it won't happen in the future."