Sue Hayward received the honour at a charity lunch yesterday.

The 58-year-old, of the Castlemere Hotel, on Shaftesbury Avenue, North Shore, founded the charity Working for the Children of Watamu eight years ago.

She did so after seeing the poverty and poor schooling in the village near the Indian ocean resort where she was holidaying with her husband, Dave.

Since then, with Dave's support, she has worked tirelessly to raise funds and support to completely rebuild the school which now has 700 children, aged from three to 16 in full-time education.

Most are sponsored and have been provided with bicycles to cut down on the time it takes to cover the long distances many have to cover to get to school.

Her second project is now under way, to build a Happy House orphanage which will give a loving and safe home to vulnerable children, orphaned by Aids or other disease, or who have been abandoned by parents too poor to look after them.

Sue and Dave will move to Watamu to run the orphanage themselves once they have sold the hotel which has doubled as their home for 18 years.

Sue was delighted to be named the 2008 Lancashire Woman of the Year at the annual awards luncheon hosted by Barnardo's.

Sue said she was humbled by her Lancashire honour: "Barnardo's has a remarkable history for helping children and I am honoured that my own work with children should be linked to its name.

"Both charities share the fundamental belief that all children should be free from poverty, abuse and discrimination and that education is the road out of poverty.

"This award is for all my children, 700 at the moment who are in full time education at the schools that we have built and for all the orphans who will live in our Happy House when it is complete.

"It is also for all those who have believed in me and my vision for these children."

n To learn more about Sue's Happy House dream visit www.childrenofwatamu. net and see a special feature in the October/November edition of our Fyldestyle magazine, in newsagents this week.