New Travelodge in Poplar will have Barking and Dagenham Council as its landlord
PUBLISHED: 10:39 14 December 2018 | UPDATED: 10:41 14 December 2018
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A new Travelodge hotel in Poplar will have Barking and Dagenham Council as its landlord.
Under the plan, the council acts as the lessee, paying the investor a guaranteed annual sum but receiving a higher amount in rent from its tenant, the hotel chain, which it anticipates ploughing into services.
The council’s cabinet finance chief, Dominic Twomey, explained the investor would carry all the risks and costs of the £90million construction of the new hotel in Oregano Drive due to open in 2021.
Travelodge would pick up the tab for operating the hotel, its maintenance and insurance under a 35-year lease agreement, he said.
The council’s main risk centred on it being locked into paying the investor even if the hotel went bust.
However Dominic said if that happened the council could find another hotel chain or convert the site into housing.
Under the deal the council gets a lump sum from the investor of £250,000 for housing and £500,000 for a sport and education facility.