Angry hotel bosses have assured residents in a Black Country beauty spot that they will not sell out to two businessmen who want to transform the historic former schoolhouse into a rehabilitation centre.

Senior staff from Butterfly Hotels told a meeting of more than 100 anxious residents of their commitment to the long-term future of Himley Country Hotel, on the Wolverhampton-Dudley border. Tettenhall-based Westhope Homes has made a change-of-use application to South Staffordshire Council.

Permission is sought for a halfway-house centre for 74 men with learning difficulties. The deadline for objections has been extended to the end of August.

At the packed meeting at the 72-bedroom hotel, residents were told by Butterfly Hotels the takeover bid would be contested.

Bill Brownhill, chairman of Himley Parish Council, said: “There are legitimate concerns about the impact it could have on the local village but we’re pleased that the hotel appears committed to fighting the application with us.

“They told us that they have a 35-year lease and want to stay here. We hope the district council will take on board our concerns when making their decision.”

The hotel franchise has spoken of its intention of restoring the building to its former glory.

Today group operations manager Bruce Rowell said: “I’m furious, because we have no intention of reneging on that. We have already spent a lot of money on redecorating the interior.

“We’ve spent another £12,000 changing over from key to card locks and £8,000 installed Wi-Fi.”

Residents have formed a protest group to prevent Roger Hipkiss and David Rostance, directors of Westhope Homes, from making a move on the hotel.

They fear the plan would increase the population of the village by a quarter overnight. They also argue there would be nowhere in the village for the male occupants of the centre, mainly aged 30-40, to go.

Westhope Homes was unavailable for comment today.