Work has stopped on the prestigious new Ambassadors Hotel on Southend seafront because of a wrangle between developers and the council.
The four star hotel was seen as a major part of the redevelopment of the old gasworks site on Eastern Esplanade and part of the council's plans to attract conferences and visitors to the town.
Perry Gamon, managing director of the Robert Leonard Group which is carrying out the development, said: "We have had to stop work because we have concerns about the conditions laid down by the council.
"We have been asked to provide a travel plan which would mean encouraging most of the visitors to travel by public transport.
"Quite frankly, you can't expect people who are coming to a four or five-star hotel to travel by bus.
"These conditions are far more onerous than when we originally gained planning permission for the hotel and they are just not reasonable."
Mr Gamon said the company had expressed its concerns to the council and was in discussion with officers to try to resolve them.
He added: "At the moment, I don't think we can go any further."
Robert Leonard also owns Esplanade House, the former office block next to the gasworks site and the former corporation loading pier.
Plans for a redevelopment of the Esplanade House site as a budget hotel, together with bars and restaurants and flats, planned as student accommodation for the University of Essex, were rejected by the council last year.
Mr Gamon said plans for a new scheme by different architects were currently being prepared.
He added: "It is basically similar to the previous one and I think it will look fabulous, but we will have to wait until the council has considered it which will hopefully be in a few months time.
"Our proposals for shops and a bistro style restaurant at the old loading pier are also on hold until we know the outcome of the other issues."
A council spokesman said while discussions were continuing, it was not possible to comment on the issue.
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