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Travelodge encourages councils to develop hotels

07 October 2013 by
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."

Grant Hearn steps down as chief executive of Travelodge >>

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