Travelodge targets local authorities for development potential
Budget group Travelodge is looking to team up with local authorities to develop hotels within wider regeneration projects.
The company has written to 210 councils to suggest working together to build hotel on surplus local authority land. Funding would either be provided by the local authority, low-cost funding from the Public Works Loan Board or via third party resources.
Once a hotel has been built, local authorities have the choice of either retaining ownership of the hotel and receiving an annual rent or selling the hotel with Travelodge as its operator.
Travelodge sent the letter, having completed seven local authority development partnership deals over the past three years in Aylesbury, Bicester, Dudley, Eastleigh, Redhill (scheduled to open end of 2017), Telford (opening 2018) and Thetford.
The company, which currently has more than 550 hotels in the UK, believes the local authority partnership deal is a key means of achieving its goal of opening 200 hotels over the next 10 years.
Peter Gowers, chief executive of Travelodge, said: "More and more local authorities are under pressure to find ways to help regenerate their historic town centres and local communities. Adding a low-cost hotel like Travelodge is an increasingly attractive choice, as it draws visitors, creates jobs and helps boost the local economy."
Travelodge's most recent opening in Dudley town centre (pictured) was funded with investment from Dudley Metropolitan Borough Council, Hinton Group and Aviva Investments. The 78-bedroom hotel is situated adjacent to the Black Country Living Museum.
Councillor Ian Kettle, cabinet member for regeneration at Dudley Council, said: "Working with Travelodge, we've not only been able to provide accommodation for the thousands of visitors to our borough, but the development has allowed us to ensure a source of income for the council which can be invested in vital council services for future generations."
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