Travelodge is writing to the leaders of local councils in Scotland where it wants to add 20 new hotels suggesting joint development partnership to help regenerate local communities.
The budget chain has targeted a £125 million expansion of its Scottish portfolio following the opening of a 74-room property in Stirling city centre.
Locations include Ardrossan, Aviemore, East Kilbride, Edinburgh Park, Falkirk, Galashiels, five locations in Glasgow, Greenock, Hamilton/Motherwell, Kirkwall, Lerwick, Loch Lomond, Montrose, Newton Mearns, Oban, Pitiochry and St Andrews.
The letter outlines the “pivotal role” Travelodge is playing supporting 12 local authorities in England and Wales to help support local regeneration, create jobs and boost the local economy and how it can do the same for local communities around Scotland.
The agreements have unique funding structures, all of which have enabled councils to utilise their existing assets, create jobs, generate income, and help to regenerate land in strategically important locations.
Hotels are built on surplus local authority land, with the funding provided either through the council’s internal resource or via low-cost funding from the Public Works Loan Board or third party resources.
Councils then have the choice of either retaining ownership of the hotel and receiving an annual rent or selling the hotel with Travelodge as its operator.
Travelodge opened Scotland’s first budget hotel in Stirling 1986. The new second property in the city features the chain’s Bar Café concept, offering breakfast, dinner and a bar menu.
A 60-room hotel near to Queen Elizabeth Hospital, Glasgow is also due to open while the company is awaiting planning permission to build a 61-room hotel in Elgin.
Company chairman Brian Wallace 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.”
He added: “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. To help us achieve this, we are writing to the local authorities at each target location, to invite them to consider how Travelodge can act as a catalyst to drive their local development agenda.
“This expansion in up and coming leisure hot spots and growing business destinations represents an investment of £125 million for investors and will create 385 new jobs.”