A COUNCIL-owned hotel has unveiled early profits a year after opening its doors.

Stockton’s Hampton by Hilton hotel opened last February after £17m was borrowed to fund the project on the former Dairy site on Church Road.

Now authority figures have finally revealed the site collected a profit of about £137,000 between April 1 and the end of December last year – with occupancy rates at around 75 per cent.

The council is banking on the hotel bringing in business rates and an annual profit of £250,000 to help fund services.

Risks in the plan to borrow more than £830,000 per annum over 35 years to fund the project proved controversial when it was approved in 2017.

More than 34,000 room bookings have been taken to date – with more than 48,000 guests staying at the five-storey hotel.

And authority bosses have hailed the first figures a “flying start”.

Cllr Nigel Cooke, Labour cabinet member for housing and regeneration, said: “It’s a hugely encouraging start and all signs point to the hotel being a highly valuable asset for the local economy, as we expected.

“The occupancy rate is around 75 per cent across the year – which is above what you’d expect for a new hotel too.

“And income generated by the hotel can be put back into vital services for people around the whole borough.”

Accounts for the council-owned hotel showed it made a £329,000 loss up to March 31, 2019.

But the hotel had only been trading for a few weeks before the start of this financial year.

Cllr Cooke added: “Naturally, pre-opening costs were incurred in the 2018/19 financial year. These were fully expected as part of the overall project costs and are fast on the way to being cleared.

“I’m looking forward to seeing the hotel go from strength to strength.”

Council bosses say the Radio 1 Big Weekend, in Middlesbrough, brought in an extra 300 room bookings last May.

However, efforts to uncover detail of occupancy rates at the hotel have proved difficult in recent months – with requests declined by Stockton Council.

Ahead of its opening, council chiefs said experts had told them hotel occupancy rates of more than 80 per cent from would generate “healthy annual profits” for the authority – with “significantly lower rates” still seeing the authority break even.

But Conservative opponents on the council have shared concern about the new figures – claiming occupancy rates had been affected by reduced overnight prices.

Cllr Lynn Hall added: “It’s frivolous spending – and it could be the council’s first borrowing casualty of it venturing into investments to generate revenue.

“We wish it well but on these figures it’s concerning.”

Cllr Sylvia Walmsley, leader of Thornaby Independent Association, said it was pleasing the hotel appeared to be turning a profit.

“The occupancy rates are reasonable,” she added. “It’s early days yet and I hope the hotel continues to build on these results.”

The 128-room hotel is owned by the council but is being run by international management company, Interstate, which is operating it as a Hampton by Hilton franchise.

General manager John Lambourne-Richardson said events in the region had boosted its profile – and was “delighted” with the first year’s figures.

He added: “The business community locally and further afield have provided a very consistent high volume of rooms – and Interstate is very pleased with its performance and are looking forward to supporting future growth.”