Middlesbrough Herald & Post
Work starts on hotel
A CAR park that will make way for a controversial new Hilton hotel in Stockton closed this week.
The Square car park, in Stockton town centre, shut on Tuesday as preparations begin for work starting on the new Hampton by Hilton Hotel.
Stockton Council will borrow £17m to fund the six-storey hotel before leasing it to the international chain group.
The plans have sparked controversy among residents and councillors, with some deeming the hotel to be a “white elephant” – but others thought the loan would be a “rock solid business case”.
The authority believes the internationally renowned hotel chain would be a huge asset, bringing in £6.7m per year into the local economy and creating around 100 jobs for local people.
Projections forecast the council would receive net operating profits of £1.2m per year, which it says would more than cover the estimated £830,000 per year required to pay back the borrowing over 35 years – with council leader Bob Cook saying “all expert projections” show that the hotel would be more than 80% occupied.
The Hampton Hilton hotel will boast 125 beds and will form part of the town’s Northshore regeneration scheme, built on Church Road on the former dairy, Kwik Fit and The Square car park sites.
Before construction begins later this summer, the neighbouring Kwik Fit building will be demolished.