Travelodge proposes partnership to finance new Kirkwall hotel

The hotel chain Travelodge has today announced that, as part of plans to include Kirkwall in an upcoming expansion of its network of hotels, it has written to Orkney Islands Council (OIC) proposing a “joint development partnership” to finance construction of a new hotel in the town.

According to the hotel chain, they have identified Kirkwall as an up and coming tourism and business destination and want to support the council’s objectives to increase visitor numbers, with the council also having recently identified an increase in the proportion of business visitors who are in need of quality and value accommodation.

In March last year, the national hotel chain announced that it was looking for a site to a build a new hotel in Kirkwall.

The hotel chain has also said the proposed partnership with the council will help “regenerate local communities and unlock development potential” as well as kick-start their own expansion programme.

Travelodge’s wider plans would see the expansion of its network in Scotland, with a further 20 hotels added across the country. The plans represent an investment of £125 million for investors and would create 385 new jobs.

According to the hotel chain, the letter it has sent to OIC sets out how it has supported 12 local authorities in England and Wales, supporting local regeneration, creating jobs and boosting local economies.

With similar letters being sent to 19 other councils in Scotland, including Shetland Islands Council, the hotel chain is attempting to show how it could similarly support local communities around the country.

These agreements offer a funding structure which the hotel chain says enables local authorities to utilise their existing assets, create jobs, generate income, and help to regenerate land in strategically important locations.

Hotels in the programme are built on surplus local authority land, with the funding provided either through the local authority’s internal resource or via low-cost funding from the Public Works Loan Board or third party resources.

Upon completion of the hotel development, local authorities would either have the choice of either retaining ownership of the hotel and receive an annual rent into the council’s revenue budget or selling the hotel with Travelodge as its operator.

Brian Wallace, Travelodge chairman said: “Many local authorities are in possession of large amounts of property and assets that are not being utilised. Investing in a low-cost hotel like Travelodge is an increasingly attractive choice, as it draws visitors, creates jobs and helps boost the local economy.”

“We operate 44 hotels across Scotland. However, the country is growing at pace and attracting visitors from all corners of the globe but there still remains a huge shortage of good quality and great value hotels. To fill this gap, we want to extend our Scottish network with a further 20 hotels and this includes our first hotel in Kirkwall. To help us achieve this, we are writing to Orkney Council, to invite them to consider how Travelodge can act as a catalyst to drive their local development agenda.”

A spokesman for Orkney Islands Council has said the local authority is unable to comment at this stage as to date, a proposal has not been received by the council.