Budget hotel chain Travelodge has asked Merton Council to fund the build of a multi-million pound hotel.
Travelodge has already opened two hotels in partnership with local authorities which involve councils borrowing money from central Government via the Public Works Loan Board at a fixed low interest rate to build the hotel, and then renting it back to the chain to recoup its costs.
The scheme, the budget hotel chain say, allows councils to regenerate disused land and generate ongoing profits over long term leases.
Paul Harvey, managing director for property at Travelodge, 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 Merton Council, to see if we can work together on a similar partnership.
"If Merton 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 within the community and generate a good return for their investment."
This week Travelodge opened a new hotel in Aylesbury funded by Aylesbury & Vale Council which borrowed £18m to develop the land for the hotel’s use.
What do you think about Travelodge's proposition? Leave a comment below.
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