Travelodge confirms three new local authority deals
Budget hotel group Travelodge has secured three new sites in partnership with local authorities, representing an investment of £11.5m.
New hotels will be built as part of regeneration schemes with Cherwell District Council in Bicester, Breckland Council in Thetford and Reigate & Banstead Borough Council in Redhill.
The new developments, which will join the Travelodge portfolio of 516 hotels, are expected to create 50 new jobs.
They represent the latest in a new initiative between Travelodge and local authorities to develop hotels in regenerated areas, using backing via low-interest funding from the Public Works Loan Board, the councils' internal resources or third-party finance.
Upon completion of each hotel, local authorities have the choice of either retaining ownership of the hotel and using the rental income from Travelodge to support the funding or selling the hotel with Travelodge as its operator and retaining the development profits to plough back into local communities.
Peter Gowers, chief executive of Travelodge, said: "We are delighted to be working with leading local authorities to help local communities realise the income potential, job creation and other community benefits that a Travelodge-backed development scheme can bring to their area.
"There are considerable further growth opportunities for Travelodge in towns and cities right across Britain and we are looking forward to adding further hotels to the portfolio as we extend the programme over the years ahead."
The new hotels include a 53-bedroom hotel in Bicester, which will open in summer 2015. It will be incorporated within a new development within Franklin's Yard, which will include a new library, council office space and retail units.
In Thetford, work will start in summer 2015 on the building of a 62-bedroom hotel alongside a three-screen cinema and five restaurant units; while Redhill will see the redevelopment of the Warwick Quadrant to include a 68-bedroom hotel with Bar Café, together with a new Sainsbury's store.
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