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Hotel says help us finance our building plans
BUDGET hotel chain Travelodge is proposing a partnership with Malvern Hills District Council to finance a new hotel in the town.
The company wants the council to borrow money from the government’s Public Works Loan Board to pay for the hotel.
It says that by borrowing at a fixed low interest rate, local authorities can regenerate surplus land they own and make double-digit profits on their investment.
And the council has said it will look into any proposal from the chain, but has yet to hear from them.
Travelodge says it has already opened two hotels through the programme, one in Aylesbury in Buckinghamshire and the other in Eastleigh, Hampshire.
In the Aylesbury case, the local council borrowed £18 million to pay for an 81- room hotel.
Paul Harvey, from Travelodge, said: “If Malvern Hills District Council 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 and generate a good return for their investment.”
In June 2011, Travelodge revealed it has signed a deal with developer Allied Investment Partnership to build a hotel on land off Edith Walk, between the Foley Arms Hotel and Waitrose supermarket.
This week, a spokesman confirmed that Travelodge is still interested in this site, along with any others the council may propose.
Coun Phil Grove, the council’s portfolio holder for economic development, said: “The council’s top priority is to bring economic prosperity to the district and we are always keen to work with the private sector to achieve this.
“We have not as yet received the letter from Travelodge but when we do, we will be interested to see their proposals and take the opportunity to discuss their ideas in more detail.”
Rival hotel chain Premier Inns put in a planning application in August for a 60- room hotel off Townsend Way.
The company estimates that visitors to the hotel could bring over £990,000 a year into the town.
The application is currently under consideration.
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