Council buys town centre Premier Inn investment to benefit the borough
A Basingstoke town centre hotel has been added to the council’s property portfolio after the purchase of Premier Inn in Victoria Street. The investment will give a good rate of return to support essential local services.
Deputy Leader and Cabinet Member for Finance and Property Cllr John Izett said: “The purchase of this modern Premier Inn adds a high quality investment in the town which will provide a good return to pay for the important services we provide the borough's residents.
"The hotel is let on a long lease and will bring in over £400,000 annually in revenue for the council."
"We believe in investing in local property to support jobs, and this hotel contributes to local tourism and the strong business economy. Unlike many other councils who have borrowed to invest in property this council uses its own capital reserves. The income from property rents is more than double the income from council tax and is key to maintaining services whilst keeping council tax low."
The purchase is part of the council’s Property Investment Strategy, which has already seen the council invest £32.49 million in the local economy, providing £2.43 million of income to help fund services in 2022/23.
Buying the 81-bedroom hotel expands the council holdings in this property sector, alongside its extensive industrial, office and land ownership, bringing more diversity and security to its investments.
The hotel has strong environmental credentials with photovoltaic panelling on the roof, high energy-efficiency and a very good building sustainability assessment.
The property is seven years old, with the most recent corporate Premier Inn fit out, including air conditioning, free Wi-Fi and an Amazon locker location.