Borough council to fund new hotel to boost Redhill town centre regeneration (From Redhill And Reigate Life)
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Borough council to fund new hotel to boost Redhill town centre regeneration
1:23pm Tuesday 4th February 2014 in Local News
Borough councillors have agreed to fund the development of a new hotel in Redhill to help boost the regeneration of the town centre.
Reigate and Banstead Borough Council’s Executive agreed to fund the development of the 68-room hotel which will form part of the Warwick Quadrant redevelopment by Sainsbury’s and Aviva.
The multi-million pound redevelopment will also see the expansion of the existing Sainsbury’s store, a new state-of-the-art gym and additional car parking.
The hotel will be built by Sainsbury’s as part of their development, and when complete, the council will lease it to Travelodge Hotels Limited.
Borough councillors agreed to investigate the viability of funding the hotel last year, after Sainsbury’s and Aviva’s development plans stalled due to difficulties with the hotel element of their scheme. The council has said the hotel will be funded from its capital reserves. Natalie Bramhall, borough council executive member for property and regeneration, said: "Redhill really needs a hotel like this.”
Coun Bramhall said: “It’s an ambitious plan for the council to invest in the hotel but the regeneration benefits of this development are significant. “It will provide much-needed accommodation for business people and visitors to the borough and help to boost the town’s evening economy.
“We’re confident that we will get a good return on our investment through the ongoing rental income and the increase in the value of the site in the longer term."
Coun Bramhall added: "The borough council is committed to maximising our assets to move forward the regeneration of Redhill town centre. “Our investment will ensure this important element of the development can go ahead.”
Sainsbury’s and Aviva’s plans involve demolishing 135,000 square feet of what the council has called “tired office space” to allow the expansion of Sainsbury’s existing store. The hotel and gym would be located above, with two floors of additional parking for 560 cars to supplement the existing 340-space basement car park. The council has said the scheme will also improve the entrance to the Harlequin Theatre and Surrey County Council’s library, as well as the public space outside them.
The Warwick Quadrant site is owned by the borough council and leased to Aviva on a 125-year lease. Sainsbury’s and Aviva have already secured planning permission for two variations of the scheme – one with and one without the hotel - so that should the hotel element have not been viable, the redevelopment of the town centre site could continue without delay.