One of the UK’s main budget hotel firms is aiming to grow its portfolio in Scotland with a novel tourism-pointed pitch to Falkirk Council.
In the race for an increased share of the lucrative budget sector Travelodge has hit on a scheme it claims will support regeneration, create jobs and boost the local economy.
The firm says its letter to Falkirk Council lays out plans for a “unique funding structure” already piloted in a number of locations down south.
It would involve the council selling a plot of surplus land to a developer, which would then enter into an agreement to build a hotel to be run under a 25-year lease.
In the example provided, a local authority was then given an over-riding lease for 25 years at a lower rent than Travelodge is paying, giving the council an annual profit rental income.
The firm – which already has an outlet at West Beancross Farm, Polmont – says 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.
A spokesman for Falkirk Council said: “We have yet to receive the letter however we are happy to discuss what measures might be taken forward once we see more details of what is being proposed.”
Travelodge has a growth strategy in place to grow its business across the UK by over 200 hotels over the next ten years.