Travelodge secures local authority partnerships worth £11.5 million

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Travelodge has announced it has secured three new hotel sites in a pioneering partnership with Local Authorities.New Travelodge hotels will be built as part of regeneration schemes with Cherwell District Council at Bicester, Breckland Council at Thetford and with Reigate & Banstead Borough Council at Redhill.

These new developments, which join the Travelodge portfolio of 516 hotels, represent an investment of £11.5 million and are expected to create 50 new jobs.

The deals are the first results from Travelodge’s drive to help local authorities make use of their local assets and regenerate local communities. Hotels in the programme are built on surplus local authority land, with the funding provided either through the council’s internal resources or via low-cost funding from the Public Works Loan Board or third-party resources.

Upon completion of the hotel development, local authorities then 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 for the benefit of local communities.

Peter Gowers, Travelodge Chief Executive 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.”

Development Details

Bicester
The need for a great value hotel in the heart of Bicester is clear, with the town of Bicester having been chosen as the site for the Government’s new garden city and with a new railway station in the pipeline. The new Travelodge will be part of Cherwell District Council’s regeneration of the Franklin’s Yard area of the town centre, through a 53-room Travelodge hotel, a new library, Council office space and a number of retail units. Work is expected to be completed by summer 2015.

Councillor Norman Bolster, Cherwell District Council’s lead member for Economy and Estates commented:

“Not only will this scheme bring jobs, boost the economy and provide essential community facilities, the addition of the hotel and restaurants will continue to rejuvenate the town outside of office hours, bringing greater activity and vitality.”

Thetford
In Thetford, Travelodge has exchanged contracts with Breckland Council for a 62-room hotel on Bridge Street, in the heart of the town. Alongside the Travelodge there will be a three-screen cinema and five restaurant units. Work is programmed to start around summer 2015.

Councillor Michael Wassell, Leader of Breckland Council, said: “The development of Thetford’s riverside area, including the brand new hotel, will support the town’s regeneration and enhance the facilities available to both residents and visitors to Thetford, Breckland and wider-Norfolk. Alongside the Travelodge there will be a new cinema and retail and leisure space, which will bring job opportunities and boost the local economy, so I am delighted that this project will soon get underway”.

Redhill
In the Surrey town of Redhill, Reigate & Banstead Borough Council will support the construction of a new 68-room Travelodge hotel with Bar Café, as part of a wider scheme including the creation of a new Sainsbury’s store.

The hotel will be part of a redevelopment of the Warwick Quadrant, which is situated in the heart of the town and includes expansion of the existing supermarket, a new gym and improvements to the entrance of the Council’s Harlequin Theatre.

Councillor Natalie Bramhall, Executive Member for Property and Regeneration at Reigate & Banstead Council, said: “The Borough Council is committed to maximising our assets to move forward the regeneration of Redhill town centre. Our investment in the new hotel will ensure this important element of the development can go ahead. We are confident that we will get a good return on our investment through the ongoing rental income and the increase in the value of the site in the longer term.”

To further strengthen this innovative partnership, Travelodge is today writing to all Local Authorities across Britain to highlight how a Travelodge-backed

development scheme can help regeneration, create an income stream & jobs, and provide a host of community benefits.

Daniel Fountain / 30.12.2014

Editor, Hotel Designs

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