Hastings councillors delay decision on controversial hotel project funding

An image of how the planned Premier Inn Hastings would look

At a full council meeting on Wednesday (September 20), Hastings Borough councillors had been due to discuss the latest stage of plans to build an 84-bedroom hotel — to be operated by Premier Inn — at the former Cornwallis Street Car Park.

Councillors had been set to decide whether or not to increase the project’s budget to £13.6m — almost double the £7m figure expected when it was first agreed in October 2019.

As the discussion began, however, Labour council leader Paul Barnett tabled a motion requesting the decision be delayed.

Cllr Barnett said: “In the last few days we have had additional information that requires us to revise the financial details in this report. I don’t think we can discuss this project until we have full and final financial information, given the scale of the proposals.

“I anticipate that the financial details can be revised fairly quickly and certainly in time for us to discuss a revised report at the next meeting of full council.”

This deferral was then agreed through a majority vote, without any substantial discussion.

The proposed budget increase had been brought to full council as an urgent item. Papers discussed at a cabinet meeting earlier this month said the urgency was justified by the need to secure a legal agreement with a preferred contractor.

As it stands, the next full council meeting is due to be held on November 22.

Much of the detailed financial information about the project has not previously been discussed in public due to its commercial confidentiality. The publicly-available cabinet papers did include some broad strokes, however.

Cabinet papers said the project’s costs have risen partly as a result of new building regulations, which will require the hotel to incorporate low energy measures and reduced carbon emissions. The £13.6m figure was also said to include a ‘significant contingency budget’, however.

Cabinet papers also said the project is intended to be partly funded through the sale of ‘surplus assets’ as a way to reduce borrowing costs. The use of these funds will also require full council approval.

The papers also said the value of the hotel as an asset (of which the council will retain a freehold ownership) had increased since the project was first tabled.