Plans submitted by Ballogie Estate Enterprises earlier this year for a new leisure venture at the Potarch Hotel site have been withdrawn.
Ballogie Estates were the developers behind plans for a proposed hotel and spa facility at Potarch, which included transforming the old Deeside Hotel.
The company has advised that it will not be proceeding with the venture in its current form.
Plans had been drawn up for a 40-bedroom hotel, spa and events venue with a planned opening of 2016, at a cost of £7 million.
Randall Nicol, partner in Ballogie Estate Enterprises, explained why the company had withdrawn its planning application: ‘‘Following full examination of the final submitted plans, we have been advised by our financial consultants that the project in its current form is not viable.
“ A significant increase in the projected build costs and an increase in the construction period, means that the risk is too great for both the hotel project and the existing estate business.
‘‘We are committed to redevelopment of the site and plans for a new scheme are being considered.
“While we are disappointed to have to make this decision, it was the only realistic course and we have not lost our vision of a radical new leisure venture, which builds positively on the present enterprises.”
The plans for the new development were submitted in June 2014.