Travelodge has exchanged contracts on its first development located at a site that was previously designated for residential use.
The site on Greenwich High Road was purchased by developer City & Suburban Homes with planning permission obtained for 14 flats. Soon after the planning was granted however the original buyer pulled out and, given the current economic climate, noone else could be found to buy it.
Travelodge has now exchanged a contract with City & Suburban Homes and, subject to planning consent being granted, will construct a 97 bed hotel, representing a £5.5 million investment by the UK's leading budget hotel chain.
Paul Harvey, Managing Director for Property Development at Travelodge, said:
"I am delighted that we have exchanged on our first development that was previously designated for residential use.
"Since the downturn began we have been offered over one hundred former residential sites but the vast majority are simply not suitable for development as a hotel. Clearly Greenwich High Road is an excellent location and I have no doubt this will become one of our strongest performing hotels".
It is not just former residential sites that Travelodge is developing. In 2008 Travelodge opened six hotels across the UK in buildings that were former office blocks, including its 190 bed hotel at London Tower Bridge and 99 beds in the centre of Wolverhampton.
Travelodge has now opened 22 hotels in office conversions, encompassing sites such as Manchester Central and Watford Central. In 2009 Travelodge will be opening three further office conversions, all in London.
Paul Harvey continued:
"The basic structure and location of many city centre office blocks mean they are a very attractive proposition for a hotel development. The speed in which a refurbishment can take place is quicker than constructing a new build, which can also lead to substantial cost savings. As we continue to seek city centre sites in every major town and city in the UK I expect us to exchange on many more office blocks over the forthcoming months".