Travelodge seeks partnership with South Lakeland District Council to bring two hotels to the area (From The Westmorland Gazette)
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Travelodge seeks partnership with South Lakeland District Council to bring two hotels to the area
THE Travelodge chain is seeking a partnership with South Lakeland District Council which could lead to new budget hotels being built in Kendal and Windermere.
The company says striking a deal would create new jobs and ‘generate a profit’ for the authority.
But the council would have to first borrow money from the Government to finance the developments.
Paul Harvey, managing director for property at Travelodge Hotels, suggested the authority could get cash from the Public Works Loan Board ‘at a fixed low interest rate’.
He said it would enable SLDC to regenerate surplus land it owned and earn a profit from the investment.
Travelodge has already opened two hotels in conjunction with local authorities via the loan programme, said Mr Harvey. This includes an 81-room hotel in Aylesbury which officially opened this week and Eastleigh Central Travelodge, which opened earlier this year.
He revealed Travelodge was also in ‘advanced negotiations with a further five authorities across the UK about similar deals’.
The Public Works Loan Board, a division of the Treasury, funds developments at a fixed low interest of 4.5 per cent. For its part, Travelodge agrees a rental deal which can earn ‘double-digit returns’.
Mr Harvey said: “Working with local councils in this creative way has been a great experience for us and as a result of these innovative development partnerships, we have today written to 124 councils, which includes South Lakeland District Council, to see if we can work together on a similar partnership.
“If South Lakeland has suitable land or assets in a location that is viable for a Travelodge hotel, then we would be delighted to work with them to help boost their local economy, create new jobs within the community and generate a good return for their investment.”
SLDC director David Sykes said: “We have not received a letter as yet. It appears to be speculation about what role any council might play in such developments. SLDC is very aware of the need to ensure development which is appropriate for the district.”
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