Budget hotel chain Travelodge is proposing joint development partnerships to 220 local authorities, as a route to opening 300 more hotels across the UK.
The group said the expansion programme could represent an investment of around £3bn for third-party investors and create more than 9,000 jobs.
Travelodge said the partnerships can “help unlock regeneration opportunities to help grow Britain’s cities and towns”.
The chain is writing a letter to local authorities today (27 March), outlining the role it has played in supporting local authorities in England, Wales and Scotland during the past decade.
That has included: being a key player in local regeneration and growth programmes; creating jobs and careers within the local community and helping parents return to work; attracting new visitors to the area and boosting the local economy; and providing a solid long-term income stream for local authorities that have invested in Travelodge developments.
The letter includes references to how Travelodge can do the same for other local authorities that it does not currently work with.
Travelodge said it is offering more than 120 towns, including Ripon, Lichfield and Cromer, the opportunity to have their first branded hotels, which could revolutionise their local economies.
Last year, Travelodge opened six hotels, three of which were local authority partnerships. Two are located in London at Docklands and Wimbledon, while the third hotel is in Braintree, Essex.
Those are operating under lease-wrapper deals, also known as income-strip deals, where the council takes a head lease with Travelodge being the undertenant.
The group is also on site with construction for two further Travelodge hotels being delivered in direct partnership with local authorities in Rotherham and Colchester. The Rotherham Travelodge is the group’s first hotel in the area, and is also the first branded hotel in the town centre. For Colchester, it is the group’s second Travelodge hotel.
Some of the new Travelodge hotels have been built on surplus local authority land, with the funding provided either through the local authority’s internal resources or via low-cost funding from the Public Works Loan Board or third-party resources.
Upon completion of the hotel development, local authorities have the choice of either retaining ownership of the hotel and receiving an annual rent into the council’s revenue budget, or selling the hotel with Travelodge as its operator.
Steve Bennett, chief property and development officer at Travelodge, said: “In the current climate, local authorities are under extreme pressure to invest in their economy and support regeneration projects. This is why we are today writing to 220 local authorities to offer our support, as we can make a real difference.
“We have a proven track record of working with 25 forward-thinking local authorities across the UK, from Ashford to Stirling. Our effective, innovative co-partnership development deals are spearheading regional economic growth and providing a solid long-term revenue stream.
“Britain is now a nation of budget travellers, with more of us choosing to stay in budget hotels than any other hotel type, and this trend is set to grow, which is why we are looking to expand our UK hotel network with a further 300 hotels.
“Adding a Travelodge hotel can be a catalyst to attract new businesses, support regeneration and bring vacant buildings back into economic use, as well as attracting thousands of new overnight visitors to the area and revitalising high streets.
“In addition, our research shows that, on average, Travelodge customers will spend at least double their room rate with local businesses during their stay; this can be an annual, multi-million-pound boost into the local economy.”
Chris Read, leader of Rotherham Council, said: “The Rotherham town centre masterplan aims to develop Rotherham into a leisure destination which will benefit the local economy and residents.
“To facilitate this vision, having a well-known and trusted hotel brand like Travelodge is a great asset and hugely beneficial as it helps to attract other major brands to invest in Rotherham.
“Also Travelodge’s great value proposition will help to attract business and leisure visitors to the area, which then positions the town centre as the gateway to explore the wider leisure and culture offer of the Rotherham borough.”
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