Plans to sell off a large section of Folkestone's seafront in an auction have failed.
Permission is in place to turn the building into hundreds of flats
The owners of Marine Crescent were trying to sell the run-down building for £2.25m.
But the bidding on Thursday failed to reach the reserve price.
Planning permission has already been granted to turn the landmark building into flats.
Shepway District Council had approved plans, and was so keen for redevelopment to take place it had offered a financial sweetener to potential buyers.
Councillors had agreed to waive a fee of £3,000 per flat normally charged on new developments to pay for the provision of school places.
The auction was held in a hotel near Leeds Castle but nobody bid the required £2.25m.