Travelodge wants to build a new hotel in Grimsby and confirms approach to council
7th November 2017
Travelodge wants to put Grimsby on the hotel map by building its first venue in town - and is asking for council land to build it on.
Hotel chain bosses have written to North East Lincolnshire Council offering to set up a deal which Travelodge said will give a massive investment to the local economy and secure long-term jobs.
Travelodge which operates over 550 hotels nationwide does not yet have an hotel in North East Lincolnshire.
In May 2015 the firm earmarked land at Cartergate when they initially wanted to invest in Grimsby and create a 75-bedroom hotel which would employ mor than 20 people.
But that was over two and a half years ago and since then Premier Inn opened in Cleethorpes bringing 70 jobs to the resort and 60 bedrooms.
Holiday Inn Express also built its 80-bedroom hotel on Wellowgate two years ago bringing 30 jobs, Hilton has opened its 103-room Hotel at Humberside Airport costing £7million and creating another 60 jobs and St James’ Hotel invested in its 125-room hotel with a £250,000 refurbishment.
That was to meet the demand for rooms with the Grimsby area’s burgeoning renewables industry.
Today's letter from Travelodge to councillors outlines the role it is currently playing by working with local authorities to use council-owned sites and promote regeneration in town centres.
Travelodge told the Grimsby Telegraph: “We are opening the network up to North East Lincolnshire council to help support regeneration in various regions across the country.
"This is by no means a requirement of Travelodge opening but an opportunity to create jobs and boost the local economy with the local authorities.”
During the last three years, Travelodge has completed seven local authority development partnership deals.
This includes the opening of new Travelodge hotels in Aylesbury, Bicester, Dudley, Eastleigh, Redhill, Telford, next year, and in Thetford.
A spokeswoman said bespoke agreements with councils have had unique funding structures, all of which have enabled local authorities to utilise their existing assets, create jobs, generate income, and help to regenerate land in strategically important locations.
The Travelodge statement said: “Hotels in the programme are built on surplus local authority land, with the funding provided either through the Local Authority’s internal resource or via low-cost funding from the Public Works Loan Board or third party resources.
“Upon completion of the hotel development, local authorities have the choice of either retaining ownership of the hotel and receiving an annual rent into the council’s revenue budget or selling the hotel with Travelodge as its operator.”
Travelodge aims to build 200 hotels over the next ten years and working in partnership with local authorities is a key route to help deliver this programme, the hotel chain says.
The hotel chain’s latest opening - Dudley Town Centre Travelodge - was funded via an innovative structure involving Dudley Metropolitan Borough Council, Hinton Properties, Travelodge and Aviva. The 78-room hotel with Bar Café and on-site car parking is situated on Discovery Way, which is land owned by the local council.
The hotel is situated adjacent to the Black Country Living Museum, where the BBC drama series, Peaky Blinders is filmed and close to Dudley Zoo.
When Travelodge first earmarked Grimsby for a new hotel, Council Leader, Councillor Ray Oxby said: “It’s good news that yet another hotel chain is showing such positive interest in our patch. Grimsby is a great town with lots of commercial growth, particularly in our core industries. Potential investment from another major hotel chain is testament to that growth. Grimsby is truly open for business.”
Peter Gowers, Travelodge chief executive, 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.
“Our customers are travelling more frequently and we are opening new hotels to ensure we are in locations where they want to be. We are delighted to be working together with forward-thinking local authorities like Dudley Council to help support their regeneration programme with the opening of a new Travelodge.
"We are looking for more sites to drive our expansion programme and today we are writing to more than 200 other local authorities, to invite them to consider how Travelodge can act as a catalyst to drive their local development agenda.”
Councillor Ian Kettle, Cabinet Member for Regeneration at Dudley Council, said: “The new Travelodge on Discovery Way is a further asset to the tourism hub which includes the Living Museum, Canal Trust, Dudley Archives and new Dudley Museum.
"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.”
News Courtesy: www.humberbusiness.com