The problem is that the price isn't realistic for a hotel operator to take it on. It would need to be probably £500,000 or less for a deal to make sense for them.
But the owner of the site knows that, just as with the Penmorfa Hotel, its worth far, far more as a development site than as a hotel. It all comes down to £££££ at the end of the day, which is a great shame. It's a potentially fantastic hotel in a great location, that would create jobs and buy supplies from other local businesses. Not to mention the hotel guests spending their money in Deganwy and the surrounding area. All that financial benefit to the local economy is lost forever if the hotel is demolished and rebuilt as apartments.
Maybe the Planning laws should be changed so that CCBC would have the power to designate certain outstanding buildings as 'Protected Usage'. In the case of the Deganwy Castle Hotel, it would mean that it could only be used as a hotel and no application for any change of use would be accepted.