The Chestnut Group has received planning permission to convert Ounce House in Bury St Edmunds’ Northgate Street into a boutique hotel

Ounce House, previously run by Simon and Jenny Pott as a five-star guest house, was acquired by Chestnut in January this year.

St Edmundsbury council has now approved alterations to turn the property into a nine en-suite bedroom hotel which, when completed, will create around 26 jobs.

It will become the group’s third location, joining the Packhorse Inn at Moulton, near Newmarket, and the Rupert Brooke at Grantchester, near Cambridge.

Chestnut managing director Philip Turner said: “It has been a challenging time but the important thing is that we have the right result. We have listened to the concerns of the neighbours and have amended the plans accordingly where the suggestions were feasible but still commercial.

“We have also taken on board the very constructive communications we have had with officials responsible for the continuing development of Bury St Edmunds, as both a tourist destination and a great place to work and live.”

Group general manager Steve Smith, who joined Chestnut in September from Sodexo Prestige where he was responsible for catering at local venues including the Apex, the Athenaeum and the Abbey Gardens, added: “The fact that, in overseeing Ounce House, I would still be very much involved with Bury St Edmunds, was one of the attractions of the job with the Chestnut.

“I know Bury St Edmunds well and I look forward to once again being an active member of its thriving business community.”