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Plan lodged to turn Clarence Terrace guesthouse into co-living HMO

The applicant says the former Douglas Promenade guesthouse is no longer suited to modern tourist standards and would provide en-suite rooms with shared facilities.

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Manx Wire · https://manxwire.im/property/2026-10-25-plan-lodged-to-turn-clarence-terrace-guesthouse-into-co-living-hmo/

The small camera obscura building on Douglas Head above the sea, with wild flowers on the slope in front.
The Great Union Camera Obscura on Douglas Head. Photo: Colin Park, CC BY-SA 2.0

A former guesthouse in Clarence Terrace on Douglas Promenade could be converted into a house in multiple occupation (HMO) under a planning application, Isle of Man Today has reported.

The owners want to create what the planning statement describes as “co-living accommodation” aimed mainly at professionals living and working in Douglas. Residents would have private en-suite rooms alongside shared kitchens, lounges and other communal facilities.

According to the statement, the building no longer meets the standards expected of modern holiday accommodation. The applicant argues that keeping it in active use would support the regeneration of the seafront while protecting the look of the surrounding conservation area.

The statement also says the town centre is short of homes, describing the scheme as “much needed residential accommodation”. It argues that the way people work and live has changed, and that more people want flexible housing, particularly younger people and those moving to the island for work.

A number of guesthouses and hotels along the promenade have been converted into flats and HMOs in recent years, the outlet noted.

Planners have yet to decide the application.

  • Planning
  • Housing
  • Douglas Promenade
  • HMO
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