Hotel chain Travelodge has written to 124 local councils seeking to work together to finance the construction of new budget hotels.
The move follows partnership deals struck with local authorities for hotels in Eastleigh and Aylesbury.
The chain says it is in advanced discussions with five other councils for developments using land and assets owned by the councils.
Through the partnership, central government will lend councils money via the Public Works Loan board at a fixed low interest rate to regenerate unused land that they own by building a Travelodge hotel as either a standalone project or as part of a mixed-use development.
This then creates jobs and boosts the local economy while also providing a considerable return of profit for the council, according to Travelodge.
The Aylesbury Travelodge, which opened recently, is the first branded budget hotel to open in the town centre. The 81-room hotel was funded by Aylesbury Vale District Council as part of a £18 million regeneration scheme which includes a Waitrose supermarket, a 270-space multi-storey car park and the budget hotel.
The council borrowed funds from the Public Works Loan Board, a division of HM Treasury, at a fixed low rate of 4.5 per cent to fund the scheme.
The rental contract agreed between Travelodge and the District Council, plus the income from the other site tenants means the council is set to generate a double digit return on its investment.
The company opened a hotel in Eastleigh at the beginning of the year in a deal which also came about through a partnership with the local authority and was funded via borrowing from the Public Works Loan Board.
Managing director for property, Paul Harvey, 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.”
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