The move follows successful partnerships between the budget hotel chain and local authorities in Aylesbury and Eastleigh where money was borrowed from central Government at a fixed low interest rate via the Public Loans board to regenerate surplus land.
In Aylesbury, the council borrowed £18m at the rate of 4.5 per cent to develop land it owned, which became the site of an 81-bedroom Travelodge, a Waitrose and multi-storey car park, while a similar scheme in Eastleigh saw the building of a Travelodge on surplus land.
Travelodge says the partnership can not only create jobs and boost the local economy, but can provide 'a substantial return of profit' for the council. Aylesbury Vale District Council, for example, is expected to generate a double digit return on its investment.
Aylesbury Vale Council leader Neil Blake said: "At a time when so many other town centre redevelopment projects across the country were being delayed, scrapped, or put on hold, we are delighted to have been able to push forward with our regeneration plans and secure an impressive yield on the site.
“The new development, including the addition of the Travelodge has not only significantly enhanced the attraction and vitality of Aylesbury, but has meant that we can now confidently move forward with the rest of our plans to improve the town.”
Travelodge is already in advanced negotiations with another five local authorities across the UK to develop land and assets they own. The budget hotel chain has aggressive plans for expansion with plans for at least another 145 hotels in London alone.
The hotel group hopes that other local councils will follow Aylesbury and Eastleigh in looking at developing land they own for either the site of a standalone Travelodge or as part of a mixed-use development with its letter explaining how both councils had secured the funds.
Paul Harvey, Travelodge managing director for property, said: “We are 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 and Wales to see if we can work with them on a similar scheme."
“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.”