A new planning policy will allow the disused Selmun Palace Hotel to be redeveloped and have new wing added to it.

This would ensure this “prime tourism site”, which lies next to Selmun Castle built in 1783, does not fall into disrepair and lose its heritage value, and that new life is added to the site, the planning authority said in a statement.

Under the government-approved policy, the site, which is owned by Air Malta, can only be used for tourism.

The rehabilitation or redevelopment of the hotel would be favourably considered as long as the layout “broadly retains” the position and orientation of the building, which is L-shaped. However, a new wing can be added.

A complete redesign would only be permitted if the end product is of very high quality.

The hotel cannot be built higher than it is now but the policy “encourages that the monolithic appearance is broken by the creative use of architectural elements, different colour schemes and materials”.

The hotel developers would also have to rehabilitate the castle and make a one-time lump sum to a fund, administered by the authority, “to improve public access and community projects”.

Earlier this year, Tourism Parliamentary Minister Edward Zammit Lewis told Parliament the government would be announcing a “competitive process” leading to the renewal of operations of the Selmun Palace Hotel within a few months.

The government and Air Malta have made a number of efforts to sell the hotel over the years without success. The majestic Selmun Castle, designed by Duminku Cachia, is often described as the baroque version of Verdala Palace at Buskett Gardens.

The new planning policy, together with all the submissions, is available on www.mepa.org.mt.