A HOLIDAY operator appears to be sticking to its original plans after some guests asked for a refund as it emerged a hotel is being used to house Afghan refugees.

National Holidays is reportedly not refunding those with bookings at The Grand Hotel in Scarborough, North Yorkshire, saying the venue continues to "operate as normal."

It comes as the Daily Mirror this week reported that two friends said they "wouldn't get a penny" back from their £169 booking, as there was no cancellation policy.

Read more: Police issue statement after The Grand Hotel in Scarborough evacuated

The Teesside pair, who were not named, told the newspaper that they were concerned as they had not been made aware of the situation, but insisted they were not racist.

Darlington and Stockton Times:

On TripAdvisor, the hotel attracts just a 2.5 star out of five rating with guests leaving reviews describing it as "filthy, terrible and vile" in recent years.

Pictures on the site also appear to show stained sheets, and unclean rooms, while one family said they were pleased to be only staying for one night.

In recent days, it has emerged that the hotel has been supporting Afghan refugees, with a number of floors separated into temporary accommodation.

But in a statement, National Holidays acknowledged that some guests had concerns, but did not appear to suggest any guests would receive a refund.

A spokesperson said: "We appreciate our customer sharing their concerns with us, and do understand that news cycles during challenging times can cause heightened concern and confusion.

"However, rest assured that we are in constant contact with the hotel, which is operating as normal, and has been welcoming National Holidays guests for many years."

The hotel, which was purchased by Britannia Hotels more than a decade ago, has been at the centre of controversy for some time owing to its poor reviews.

It has since been confirmed that Scarborough Borough Council bosses have asked for a meeting with hotel bosses after complaints of its 'poor' condition from over summer.

A council spokesperson said: "We'd like to understand how some of the recent reported problems are being tackled and to find out what - if any, support can be provided."

On social media, Councillor Neil Heritage of the Newby Ward said that the hotel had been having a "negative impact" on tourism in the seaside town.

The D&S Times has approached Britannia Hotels for comment.