CIVIC leaders say a council plan to borrow £17m to build a Hampton by Hilton hotel in Stockton is based on a "rock-solid" business case.
Earlier this week The Northern Echo published confidential information about Stockton Borough Council's business plan which assumes an 83.6 per cent occupancy rate at the 125-bedroom hotel at £80-a-room.
That raised some concerns from Conservative councillors at last week's cabinet meeting who queried why all the risk had to be on the taxpayer.
The authority says the proposed hotel on the former dairy site, on Bishop Street, could bring forecast profits of £1.2m-a -year which would more than cover the estimated £830,000 per year required to pay back the borrowing over 35 years.
Council leader, Bob Cook, said: “This proposal is founded on a rock-solid business case that has been subject to due diligence and validated by industry experts CBRE and Hotel Valuation Services, two of the world’s leading firms in the commercial property and hotel market.
"Equally important are the wider benefits. The proposed hotel is a key part of our plans for the regeneration of Stockton town centre and an economic impact assessment estimates this kind of internationally renowned hotel would be a huge asset, bringing in £6.7m per year into the local economy and creating around 100 jobs for local people."
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