The multi-million pound seven-star luxury golf hotel planned for the family seat of the Marquis of Ailesbury in Marlborough will go ahead, despite costs almost doubling to £135 million.

That was the assurance given this week by Laurence Davies, chairman of Golf Club Investment Holdings, the American company behind the project.

He says the scheme to turn the Grade I listed building in the heart of Savernake Forest, on the outskirts of Marlborough, into the Gleneagles of the West will get under way as soon as the economy picks up and bank lending improves.

Mr Davies has taken over as chairman of GCIH from Ronnie Nathan, who successfully steered the scheme for Tottenham House, through the planning stages.

The 19th century palladian mansion is on the English Heritage at risk register and has been empty since the Amber Foundation, a charity that rehabilitates young people with drug and alcohol problems, moved out almost ten years ago.

Mr Davies said although the projected cost of transforming the building into a 200-bedroom luxury hotel complete with golf course, conference centre and spa had rocketed it would be going ahead as soon as banks were brave enough to back big projects again.

“It is most certainly not dead in the water and has been held up only by the recession,” said Mr Davies.

“As soon as there are improvements in bank lending we will be going ahead with it as planned but it does depend upon the economy picking up.”

He added: “Despite the state of the economy if it was open now it would be full.”

The project was first unveiled in 2002 when costs were estimated at about £50 million.

By 2005, when the former Kennet District Council granted planning permission for the scheme, the bill had risen to £70 million.

Since then the costs have doubled and doubts had been expressed locally that the proposal, which will create hundreds of jobs, would go ahead because of the state of the economy.

Roger Durie, chairman of Great Bedwyn Parish Council. which includes Tottenham House, said there had been mixed feelings when the plan for the golf hotel was unveiled.

Concerns were raised over the forecast increase in traffic as well as the adequacy of the water supply.

However, he added: “It will preserve Tottenham House and for that reason we welcome the scheme.”

John Moore, a trustee of the Savernake Estate, declined to comment.