Hotels in Croydon have been forced to shut floors because of a shortage of guests, it was claimed this week.

The news came after council officers claimed there was an "insatiable demand" for hotels in Croydon.

Conservative Councillor Dudley Mead, who is on the board of a town centre hotel, spoke out after an update on the council's Vision 2020 regeneration project said more hotels were needed.

Coun Mead said existing hotels were struggling to fill rooms to such an extent that they were forced to shut floors until business picks up again.

The shadow cabinet member for housing and performance accused the council of having unrealistic expectations of the town's economy.

He said: "I am chairman of the board at the Fairfield Hotel and I know we have had our third floor closed for some time now. Things have been very slow, certainly since just after Christmas.

"I know we're not the only hotel in Croydon to be in this situation either. Others have had similar problems.

"I find it incredible the council is talking about opening more hotels. The economy in Croydon is not as buoyant as the Labour group believes it is."

The comments about Croydon's successful hotel industry were made at last Monday's cabinet meeting, during an update on the Vision 2020 regeneration project.

Council leader Tony Newman refuted criticisms of Croydon's economy and said: "It's quite extraordinary. Hotels are falling over themselves to come here and the economy is growing. Jury's Inn, in particular, is doing extremely well."

A spokesman for the Holiday Inn in Croydon denied the hotel had closed any of its floors but did say business is not doing as well as it could be.

General manager Craig Penry said: "We are in our second year of full operation and we are increasing on last year's business. It's not quite where we want it to be yet but it's an improvement."