Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 27, 2026

Purpose: To consider the report of the Cabinet Member for Economic Development, Growth and Skills, seeking approval for the proposed surrender and simultaneous grant of a new 250 year lease in respect of the former Holiday Inn now VOCO hotel at West Quay Road.

Content: (i)  To approve the arrangements reached with Holiday Inn for a new lease and the receipt of the lease premium which will be treated as a capital receipt. (ii)  To delegate authority to the Executive Director of Growth & Prosperity to settle the detailed terms of the lease following consultation with the Cabinet Member for Economic Development, Growth and Skills  

Reasons for the decision: 1.  The proposal offers certainty of increased revenue and a significant capital receipt in the current year (2025/26).   2.  The new revenue stream is protected from erosion by inflation over the life of the 125 year rental stream as it is index linked.    3.  The refurbishment provides an upgrade of the existing buildings, in line with the Council’s aspirations for the area, as promoted in the City’s Renaissance Plans, in which the site falls, within a proposed Innovation District. The hotel is popular with Cruise passengers and will provide an improved passenger experience in the City.   4.  The proposal demonstrates a significant investment into the City by the private sector, which is a welcome boost for the city.   5.  The proposals involve the refurbishment of the existing buildings as opposed to total redevelopment which is beneficial in terms of sustainability and carbon emissions.   6.  A valuation report from specialist hotel valuation experts confirms that the proposals satisfy the Requirements of Section 123 of the Local Government Act 1973 concerning Best Value.  

Alternative options considered: Do Nothing This option passes by the opportunity for the Council to receive an immediate and significant capital payment and would maintain an income stream with no protection against inflation, thus reducing the value of the Councils revenue stream over time.