Decision details

To seek cabinet approval to bring back the George into use as a hotel by refurbishing and redeveloping it to create an ‘upscale’ hotel. To also seek approval to enter into a Hotel Management Agreement with a hotel operator.

RESOLVED –

1)    That approval be given to the redevelopment of the George Hotel site as a hotel with an associated food and beverage offer.

2)    That in relation to the hotel operator, approval be given to the preferred hotel operator - Radisson Hotel Group, utilising the Radisson Red brand, to be appointed to operate the hotel once all the necessary agreements are in place.

3)    That authority be delegated to the Strategic Director (Growth and Regeneration) and Service Director (Finance) to progress and conclude detailed negotiations with the recommended preferred hotel

operator and to authorise the Service Director (Legal Governance and Commissioning) to enter into the Hotel Management Agreement (HMA) and any other ancillary formal legal documentation on behalf of the Council.

4)    That authority be delegated to the Strategic Director (Growth and Regeneration), Service Director (Finance), and Service Director (Legal, Governance and Commissioning) to explore and agree the preferred option relating to the potential commercial structure of the hotel ownership which could include a Special Purpose Vehicle (section 2.9 of the report refers), noting that this would be an alternative to the Council entering into the HMA directly with the preferred hotel operator.

5)    That in relation to the cost, design and construction, approval be given to the capital allocation of up to £20,205,000 (section 2.11 of the report refers) and to make this available in the Capital Plan to deliver the project to completion.

6)    That authority be delegated to the Strategic Director (Growth and Regeneration) in conjunction with the Service Director (Finance) to apportion further funds, if required, of up to 10% over the pre-tender estimate.

7)    That authority be delegated to the Service Director (Development), in conjunction with the Portfolio Holder (Regeneration), to agree the final design of the hotel.

8)    That authority be delegated to the Service Director (Development) to prepare and submit any necessary planning, listed building consent applications and any other statutory consents required to ensure delivery of the hotel development.

9)    That authority be delegated to the Service Director (Development) to undertake the necessary procurement exercise to award the building contract to deliver the hotel project, subject to planning, HMA and other necessary consents being in place.