The Bay Hotel, an iconic pub and restaurant overlooking Port Erin Bay, has been listed for sale with an asking price of £950,000.

Situated on Shore Road, the property is being marketed by estate agents Garforth Gray as a landmark beachfront property with development potential.

The listing describes the building as an established public house and restaurant, with two bars, dining areas and outdoor seating, also highlighting views across Port Erin Bay towards Bradda Head.

The sale comes after the venue closed on Sunday, October 4, following concerns about the financial viability of operating during the winter months.

Bushy's founder Martin Brunnschweiler said the pub's tenant, Terry Burns, had reviewed several years of winter trading figures and concluded that rising costs made it difficult to keep the business running throughout the colder season.

The intention had been to reopen the venue at Easter, although Mr Brunnschweiler said a buyer coming forward could affect those plans.

The Bay was reopened and refurbished by Bushy's shortly after the turn of the millennium, having previously remained closed for several years.

According to the Garforth Gray listing, the building includes a three-bedroom apartment on the first floor, featuring a living room, dining kitchen, bathroom, separate shower room and private terrace.

The second and third floors are currently unused. However, planning permission has previously been granted for five additional self-contained apartments, which could be used for permanent residential accommodation or holiday lets.

The listing states: ‘The property offers a range of possibilities. A buyer could develop the approved residential accommodation as an investment while continuing to let the pub and restaurant.

‘Alternatively, the upper floors could be combined into an impressive residence over three floors, with the ground-floor pub and restaurant let as an investment. Other configurations may also be possible, subject to the necessary consents.’