Travelodge encourages councils to develop hotels
Travelodge is working in partnership with local authorities to develop budget hotels with funding from low-interest government loans.
Two Travelodge hotels in Eastleigh Central and Aylesbury have already opened following funding to the respective local councils from the Treasury through the Public Works Loan Board. A further five Travelodge hotels, funded in this way, are also in the pipeline.
The hotels would then beleased to Travelodge on a 25-year-term, with the council repaying the debt using rental income from the hotel and any other tenants.
The 81-bedroom Aylesbury Travelodge, which officially opened last week, is part of a development that includes a Waitrose supermarket and a 270-space multi-storey car park.
Aylesbury Vale District Council borrowed £18m from the Public Works Loan Board at a fixed rate of 4.5% to fund the project.
Paul Harvey, Travelodge managing director for property, said the company is the first UK budget hotel brand to work with local councils on co-partnership developments.
"The deals we have done so far have provided a great investment opportunity for both parties and as a result of this innovative calibration, we have today written to 124 other local authorities across England & Wales to see if we can work with them on a similar scheme," he said.
"Both Eastleigh and Aylesbury Vale are forward-thinking, innovative and enterprising local authorities. Both councils have recognised the opportunity to add new facilities into their towns whilst making a good return on their investment."
