PLANS which would see the former Odeon cinema on South Clerk Street transformed into a hotel were today unveiled by the building's owner.

Duddingston House Properties (DHP) says the proposal – which would see the building's auditorium demolished to make way for a public park - is the only viable plan left for the buildings.

The firm has put images of its "Zed" building on show in the Southside Community Centre to gauge local opinion.

The front of the historic cinema, which first opened in the 1930s, would be preserved under the proposals, leading into a large open lobby area that, in turn, would lead into both the park and the new building. A new entrance will be included on Buccleuch Street.

The park would feature a sculpture garden, possibly featuring work created by students of Edinburgh College of Art and, in a nod to the building's history, a film projection screen would be included.

Despite the massive internal changes, the plans have reportedly received the backing of heritage watchdog the Cockburn Association and Architecture and Design Scotland as they will ensure the survival of the building in some form. They have also won the support of Edinburgh College of Art.

It is likely any moves to demolish the interior of the B-listed building, which opened its doors as a cinema in the 1930s, would be met with protest, although Colin Christison, secretary of the Southside Community Council, said they welcomed the plans.

"We are pleased that something seems to be happening at last," he said. "As it is most unlikely that the cinema will be restored, we should prefer a mixed use for the building, even if that includes some element of short-term accommodation."

DHP bought the building for an estimated £2 million in 2003. Commercial director Charles Martin admitted the plans were at a very early stage and said he hoped to get as much feedback as possible from the community.

"It is an ambitious plan, but we feel it is the best way forward," he said. We have owned this building for almost four years and, while we would have liked to keep it, realistically there has to be a cut-off point.

"While a conservation buyer could still come along at the last minute, it looks like there is no real way to keep the building whole while finding a new use for it. This plan allows us to keep the facade and give the area a new lease of life. Of course, a lot depends on what people make of it."

Local councillor Ian Perry encouraged people to go along and look at the proposals.

He said: "They will have to go before planning, but they preserve the frontage of the Odeon and will mean the site is used for something, so they should not be dismissed lightly."

DHP bosses say they have considered dozens of options since they bought the building.

The company found no demand for a new cinema, because of the large number of multiplex cinemas now open in Edinburgh, and hopes of creating a nightclub were dashed when the venue was refused an entertainment licence.

Creating a new home for the Gilded Balloon, a base for the Scottish Chamber Orchestra, a student housing complex with a bar-restaurant and a venue for the Edinburgh International Film Festival were also explored, but none came to fruition.

• The plans will be on show at the South Side Community Centre on South Clerk Street until Friday. Mr Martin will be there on Thursday to answer questions.