Teesside Council to vote on raising £17m to fund Hampton by Hilton hotel
A Teesside council is looking to raise £17m to fund the development of a 125 bedroom Hampton by Hilton hotel.
Under proposals put forward by Stockton-on-Tees council, the hotel - part of the Hilton Worldwide stable - will be funded and owned by the council and managed by Interstate United Kingdom Management.
Council members are set to vote on the proposals this week. Members will be asked to invest up to £17m on the development, which will result in the council selling the hotel once demand has been established.
If the plans get the green light detailed design work will begin in the autumn of this year with a view to hotel opening in late summer 2018.
Regeneration and transport councillor Nigel Cooke, said: "It is fantastic that we have attracted such a prestigious global name and we know there is an incredibly strong business case for a hotel of this nature.
"We are already seeing a growing demand for corporate overnight stays with midweek occupancy at 95% in hotels across the Tees Valley and there is a shortage of internationally branded hotels. Similar business models are in place elsewhere in the country and are proving to be very successful.
Once completed the Northshore riverside location will have 205 new homes and 80,000 sq ft of office space. The hotel will also be adjacent to the planned International Foundation College at Durham University's Stockton campus.
A spokesperson for Hilton Worldwide said: "Hampton by Hilton is in an exciting phase of growth and we're looking at opportunities in a number of UK cities. However we have no new projects to confirm at this stage"
Hilton Worldwide has 19 Hampton by Hilton hotels in its UK portfolio, with plans to open a 20th in Manchester. It recently opened a Hampton by Hilton hotel in Glasgow and is set to open two more in Dundee and Blackpool as part of wider plans which will see it open another 30 Hampton by Hilton hotels in the UK by the end of 2020.
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