The bosses of a historic Birmingham hotel have pulled the plug on its use as a hostel for asylum seekers ahead of a major expansion and refurbishment.

Just over a year ago the Victorian Paragon Hotel in Moseley Street, Highgate was being used to house up to 230 asylum seekers, mainly single young men, prompting complaints from locals.

In response, the number was drastically reduced and now the Mail understands none are housed there.

According to sources, Iraqi owners the El-Akabi family are preparing to invest in a multi-million pound overhaul of the hotel which will see it restored to its former glory and expanded with 99 rooms added through two four-storey extensions contained within its courtyard.

The magnificent Victorian Gothic style six-storey hotel was built in 1903 as Rowton House - owned by Lord Rowton - to provide decent hostel accommodation for migrant workers arriving from Ireland to toil away in Birmingham’s factories. After falling into disuse in the 1960s and was relaunched as the 250 room Paragon Hotel in 1993. It is grade II listed.

It was bought by billionaire Narim El-Akabi in 2013 after the previous operator went bust.

It has been a slightly run down hotel on an unfashionable end of the city centre and is rated between ‘terrible’ and ‘poor’ on travel review website Tripadvisor.

Architects images showing courtyard extension to Paragon Hotel in Highgate

Now that the Highgate and Digbeth area is up and coming with major investment including HS2, the

Metro extension

, St Lukes area regeneration, Smithfield and the massive Connaught Square development owners feel the time is right to fully restore the hotel as a quality conference and wedding venue and tourist hotel.

The extension plans are due to be reviewed by the council’s Conservation and Heritage Panel on Monday, January 9, which advises on development of historic buildings. It will then be presented to the city’s planning committee.

In 2015 residents raised a petition against the hotel accommodating up to 230 asylum seekers through contractor G4S - saying it was too many for a single area. They complained that the young men would hang around the neighbouring park and streets all day and that police had been called out dozens of times to disturbances. They argued that no more than 50 should be staying there.

Now Eddie Howard, chairman of the Highgate Housing Liaison Board, says the problems have vanished. “It’s better for Highgate and a good result for everybody.”

He also welcomed the hotel’s expansion plan adding: “It’s good investment for the area. I hope they will encourage local people to apply for the jobs being created.”

Highgate residents and councillor Tahir Ali gather outside The Paragon Hotel in 2015 to complaint at large number of asylum seekers housed there