GMCA agrees loan for new hotel at Lancashire CCC

PLANS to create a new 150-bedroom hotel at Lancashire County Cricket Club (LCCC) at its Emirates Old Trafford home have moved a step closer.

This follows agreement from Greater Manchester’s Combined Authority (GMCA) to provide a £5m loan to the club.

The loan, funded through the Greater Manchester Growth and Growing Places Funds, will help the Lancashire move closer towards the funding required for the development.
 
The hotel would replace the current outdated 68-bed Old Trafford Lodge hotel – adding to the multi-million pound regeneration focused investment already at site which has been key to bringing Test Match cricket back to the region.

Mike Blackburn chair of the GM LEP said: “LCCC has a long-standing relationship with Greater Manchester and is one of the most prestigious sporting arenas of its kind in the country.
 
“This agreement by the Combined Authority will enable the club to strengthen its position and its long-term growth strategy by allowing it to compete as an all-round first class sporting, conference and events venue, bringing business to the area and attracting wider investment, employment and training opportunities.”
 
LCCC has already commissioned an external demand study which supports the requirement for additional hotel accommodation and the expectation is that it will be operated through a branded franchise.
 
Leader of Trafford Council and portfolio holder for the skills, employment and worklessness agenda for GMCA, Cllr Sean Anstee, said: “Not only would this hotel be a real boost for the regeneration of the area on the back of the already impressive Emirates Old Trafford site, it will also create at least 76 much welcomed new employment and training opportunities.
 
“With an ever increasing  number of events taking place at the venue this additional accommodation would support but the club’s growth and offer, but also the borough and wider region in attracting further business and footfall to the region – an estimated £2.3m GVA per annum.
 
“The council will now need to consider the further request for support recognising its ability to positively enhance the Trafford economy, with the full support of the cross party political leadership of the Greater Manchester Combined Authority and that of the Greater Manchester Local Enterprise Partnership.”
 
A report was presented to all 10 leaders at a meeting of the Combined Authority who agreed to support the proposal.
 
Leader of Tameside Council and portfolio holder for the investment strategy and finance portfolio, Cllr Kieran Quinn, said: “This is really great news for one of the regions premier sporting clubs. I am pleased that the Combined Authority was able to offer their help and support.
 
“This loan will, I’m sure, move the club closer to its funding level target and strengthen its position as an all-round first class sporting venue.”
 
The total cost of the redevelopment is expected to be in the region of £12m.  The club has already secured £3m and this loan will see the total pot reach £8m.

There is a proposal to fund the further £4m through a loan from Trafford Council.  The conditions of the loan from the Combined Authority agreed last Friday, is on the basis that Trafford Council provide the additional loan and this proposal is set to go to a meeting of the Council in late March.  Both loans will be subject to terms and conditions as well as interest (up to the repayment date of 2021).
 
David Hodgkiss vice chairman of LCCC said: “We are absolutely delighted that the Combined Authority has chosen to support this next phase of the development of our fantastic and historic 150 year old club after the success of our innovative Cricket Bond.
 
“The £5m financing from The Growing Places and Regional Growth funds reinforces our position as a leading member of the community for Trafford and Greater Manchester. As a Community and Benefit Society, all of our profits are reinvested into facilities and employment that all benefit our residents and visitors.
 
“Alongside the funds raised through the cricket bond this is the next stage of financing to enable the development of a new four star 150 bedroom hotel here at Emirates Old Trafford.  This project will eventually lead to the creation of £1m worth of annual employment right in the heart of Trafford.”