Branded threat may force hotelier to turn property into flats

Competition from branded budget hotels such as Travel Inn and Travelodge has forced the president of a West Country hoteliers' association to apply for planning permission to turn his hotel into luxury flats. Independent hoteliers elsewhere in the country also say they are threatened.

Tony Chapman, who runs the two-star Rozel Hotel in Weston-super-Mare and heads the resort's hotels' and restaurants' association, says his application for planning permission is precautionary and "an escape route if needed". He cites the rise of edge-of-town budget hotels as the main reason that businesses in the centre are losing trade.

"If the plans come to fruition, Weston will have almost 800 new beds for tourists," said Chapman. "There is a new Travel Inn and a Travelodge, and a Holiday Inn Express is being built. They offer convenience at half our prices. We then have to drop our prices but our cost base remains the same. There is no profit in it."

In Weymouth, Dorset, local businesses are concerned about a 40-bedroom Travel Inn planned by Whitbread. Planning consent was granted despite objections from the Weymouth Hoteliers and Caterers Association.

"It will take away trade in the middle and lower end of the market. We would welcome a four-star hotel because that's something the town doesn't have, but at the no stars to three-star level, we're already well supplied," said association president Tony Flux.

In Scarborough, North Yorkshire, plans are also afoot to build a budget hotel. "It will affect the number of one- or two-night business stops," said Eric Wilson, deputy manager of the three-star, 73-bedroom Esplanade hotel.

But Bonnie Purchon, vice-president of the Scarborough Hotel Association, said: "I'm sure it's not going to interfere with holiday-makers coming to Scarborough. There's enough trade to go around."

by David Shrimpton and Kevin Lee