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Hotel chain proposes new funding scheme for development
12:28pm Sunday 13th October 2013 in News
A BUDGET hotel chain is asking council officials to help fund a new development in Chester-le-Street.
Travelodge has written to Durham County Council proposing an “innovative new development partnership” to finance the construction of a hotel in the town.
It says the scheme will create jobs and generate a profit for the council.
Under the plan the council would borrow money for the development from the Public Works Loan Board at a fixed low interest rate.
Travelodge has already opened two hotels built this way with local authorities in Buckinghamshire and Hampshire.
The company says the rental deal agreed between it and Aylesbury Vale District Council, Bucks, plus the income from the two other site occupiers means the council 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 Durham County Council to see if we can work together on a similar partnership.
“If Durham 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 spokeswoman from Durham County Council said officials would consider the firm’s proposals but could not comment further until the letter had been studied in detail.
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