The planning application for the old folks home was turned down on two counts, the loss of the hotel and the architectural design of the new building.
They do not need planning permission to demolish the hotel (just need to give notification), in doing so this would remove one of the counts that the planning permission was turned down on and increase their chances with a new application.
In a time of universal deceit - telling the truth is a revolutionary act. George Orwell
When the debate is lost, slander becomes the tool of the loser. Socrates