‘Huge blow’ for UK seaside town as hotel group pulls out of £6m deal | UK | News
The council could be left helpless amid fears a hotel developer will pull out of a £6m investment on the Yorkshire coast.
Newcastle-based Inn Collection Group had previously planned to invest in a new 42-bedroom seaside hotel and restaurant in Redcar, Coatham, where tourism is a major contributor. But scrutiny committee members at Redcar and Cleveland Council were recently told the developer was “exploring alternative options”. Northern Echo. The combined authority has already spent £294,000 rehabilitating the land for construction, so the race to find another developer could be on.
Councilor Chris Jones, who chairs the council’s growth review committee, said it would be a “real blow” if no plans for the site were on the table.
Councilors were reportedly told at the meeting that the site had “attracted interest from multiple investors and potential options may arise in the future”. A council spokesman added that “discussions about the future are ongoing”.
Overnight stays were highlighted as a potential tool to boost the region’s tourism economy in 2022, as consultation responses from people working in the industry highlighted “dependence on day visits”. Tourism contributed an estimated £216 million to Redcar and Cleveland in 2022.
Lynn Pallister, cabinet member for growth and enterprise, confirmed the positive progress of the development at the council update in March 2024.
He said the plan is for Inn Collection Group to begin developing the hotel once the remediation work is completed.
He said: “Coatham beach has been completely regenerated over the past year with beachfront leisure facilities boosting tourism in the area and we will soon be welcoming a major hotel chain to complement this.”
But doubts began to surface at the start of the project, when the council formalized a term presidency agreement with the hotel chain in 2020.
Planning permission for the development was later granted, but former council leader Sue Jeffrey had questioned whether there was a “plan B” in case the developer backed out.
