A lack of trade has been blamed as hotel owners reveal one of a town's best known establishments is set to close this summer.

The Old Brewery House Hotel in Reepham will close in August.

John Hubbard, area manager for Oxford Hotels and Inns, which owns the Market Place venue, confirmed the closure, blaming a lack of trade.

The hotel, which includes a bar, restaurant and 23 bedrooms, is understood to be operating at a loss and would require a considerable investment for refurbishment.

It is believed members of staff have been given notice, although it has not yet been confirmed when exactly the Old Brewery House Hotel will close.

People in the town said its closure will be a 'sad loss' but hope that a different hotelier will take on the Grade II listed building.

David Laws, chairman of the Reepham Business Network, said: 'It will be a loss to the local community. I'm a member of the Reepham and District Rotary Club and we meet there every Monday – we will have to find a new home.'

Brenda Gostling, chairman of the Reepham Chamber of Commerce, said: 'We are hopeful that in the longer term it will be a positive thing for Reepham and that it will be turned into the hotel it has the potential to be. For it to become a better and more successful hotel would be brilliant.'

The listed Georgian building was built in 1729 and originally named the Dial House because of a large sundial over the front door.

It was converted into a commercial hotel in 1972 and renamed The Old Brewery House Hotel in recognition of its previous role as residence of the Bircham family that had run a brewery in Reepham for several generations, and because one of the hotel's principal rooms used to be the brewery.

Earlier this year, staff and gym users were stunned by the sudden closure of the hotel's leisure club.

At the time, hotel bosses said the leisure club, which included an indoor swimming pool, gym, squash courts and sauna, would be closed for the foreseeable future.

Concerns have also been expressed about the future of The Crown after a couple applied to change its use to residential. With the confirmed closure of the Old Brewery House Hotel, if The Crown were to close it would leave just one remaining pub, the King's Arms, to serve Reepham.