THE new owners of the Midland Hotel insist their multi-million pound renovation of the landmark building will go ahead and that the art deco hotel will retain its historic name.

Kalber Leisure have had talks with the Friends of the Midland who have successfully persuaded the company to keep the original name, The Midland Hotel.

The company, which bought the Grade II listed building in June, had originally wanted to rename the hotel The Midland Grand Metropolitan.

And managing director Mike Baron says the ambitious £9.6 million renovation and upgrade to a 5 star hotel will go ahead despite increasing costs and the fact that two of Kalber directors, Jared Brook and Lincoln Fraser, were recently barred from being company directors.

Mike Baron explained: "The Midland Hotel development will be self-capitalised by the company and we're confident that the renovation will be completed by Easter 2003 in time for the hotel's 70th anniversary."

He added: "The meeting with the Friends of the Midland was extremely useful and they highlighted that the hotel's name was an important asset which will attract visitors with an interest in art deco to Morecambe from around the world. As enthusiasts, they have an expansive knowledge of the hotel and its era and we look forward to developing a productive relationship with them."

The Midland Hotel designed by Oliver Hill is famous in the art deco world and it was felt the name change might cause some confusion.

Chair of the Friends of the Midland, Sue Thompson, said: "We are extremely pleased that Kalber Leisure has decided to stay faithful to the hotel's history and keep the hotel's original name. Following the meeting we are encouraged that a company is prepared to take up the enormous task of renovating it and excited about Kalber Leisure's vision to restore the true ambiance of the hotel."