Travelodge offers Cornwall Council “innovative partnership” on hotels in Falmouth and Penzance
TRAVELODGE is pleading with Cornwall Council to sell off “surplus” land and borrow money to help finance the building of new hotels in Falmouth and Penzance.
In a letter sent to the unitary authority this week, the company proposes an “innovative new development partnership” to finance the construction of new Travelodge hotels in the two towns.
It claims the partnership would not only create jobs in the community but would also generate a profit for the council.
There are six Travelodges in Cornwall. A new hotel would contain between 80 and 100 bedrooms and could be part of a multi-use scheme including a supermarket and residential flats, creating up to 15 jobs.
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A Travelodge spokesman said the company had been looking for sites in Falmouth and Penzance for a while.
“It is very attractive for us to be in Falmouth and Penzance. We know our customers want to be there.
“We are not sure but we hope this will spark some interest.”
The letter, which has also been sent to 120 local authorities across the country, said: “By borrowing money from central Government via the Public Works Loan Board (PWLB) at a fixed low interest rate, local authorities can regenerate surplus land that they own and generate double-digit profits on their investment.”
The spokesman said: “Most local authorities are sitting on land banks which they under utilise and with a bit of creativity thinking could be used for better benefit.
“Local authorities are increasingly doing this. Finance is difficult to get for development these days.
“Local authorities can borrow at a very low rate. It is a very good way to get finance with a good return.
“It is not that ‘out there’ an idea.”
The company confirmed that it had already successfully opened two hotels in conjunction with local authorities through this programme, and had been involved in “advanced negotiations” with a further five authorities across the UK about similar deals.
One of the two new hotel deals, in Aylesbury Buckinghamshire, was on an 81-bedroom hotel which is part of a wider regeneration project in the town centre.
Under the partnership, the local council borrowed £18 million from the PWLB, which funded the development at a fixed low interest rate of 4.5 per cent.
The rental deal agreed between Travelodge and the District Council, plus the income from the two other site occupiers, mean that Aylesbury Vale is set to generate a double digit return on its investment, Travelodge said.