Some mistake, surely
I don't wish to cast doubt on TRi's ability but it looks like they were given the wrong brief. Apart from a derogatory comment saying that the hotel is well known in the region because of its reported literary connections (which definitely casts doubt on my research and that of the staff at The Lyme Regis Museum), they have not considered the value of cultural heritage. Perhaps that was their brief but it misses the whole point.
This hotel can be differentiated on the world wide fame of its former guests. They should have put a value on that. If they and Palmers can't, they should sell the building to an entreprenuer who can or give it to the National Trust. The Three Cups is a national and international treasure. If Palmers can't see that and if they can't make a profit out of the building they should hand it over to those who can.