Travelodge proposes deal on a Lewes hotel

otel
otel

Travelodge, the UK’s first budget hotel chain, has indicated an interest in opening a new hotel in Lewes.

It has this week written to East Sussex County Council proposing an innovative new development partnership to financing the construction.

Travelodge said the Lewes project would not only create jobs in the community but would also generate a profit for the council.

It said that by borrowing money from central government via the Public Works Loan Board at a fixed low interest rate, local authorities can regenerate surplus land that they own and achieve double-digit profits on their investment.

Travelodge has already successfully opened two hotels in conjunction with local authorities via this innovative programme which includes an 81-room hotel in Aylesbury which officially opened this week and Eastleigh Central Travelodge, which opened earlier this year.

The company is also in advanced negotiations with a further five authorities across the UK about similar deals.

To develop Aylesbury Travelodge on a 16,000 sq m site, which is part of a wider regeneration project in Aylesbury town centre, the local council borrowed £18m from the Public Works Loan Board, a division of HM Treasury, which funded the development at a fixed low interest rate of 4.5 per cent.

The rental deal agreed between Travelodge and the district council, plus the income from the two other site occupiers means that Aylesbury Vale is set to generate a double-digit return on its investment.

Paul Harvey, Managing Director for Property at Travelodge Hotels, said: “Working with local councils in this creative way has been a great experience for us and as a result of these innovative development partnerships, we have today written to 124 councils, which includes East Sussex to see if we can work together on a similar partnership.

“If East Sussex 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 within the community and generate a good return for their investment.”

A spokesperson for East Sussex County Council said on Tuesday: “Until we have received the letter and considered it, we cannot comment.”