West Midland council set to buy landmark hotel in major deal

A West Midlands local authority is moving into the hotel sector after announcing it intends to buy the leasehold on a major venue in its area.

Coventry City Council is on course to purchase the lease for Coombe Abbey Hotel from current owner No Ordinary Hotels. The terms have not been disclosed but it is thought the deal could be in excess of £10m.

The local authority already owns the freehold to the Brinklow-based 119-bedroom, Grade I-listed property and its estate – but sees the hotel as a solid investment for the future.

Increasingly, local authorities are looking to property ownership as a means of generating income. Providing the hotel operates successfully then the revenue stream could help the council to avoid deep cutbacks to essential public services.

Walsall Metropolitan Borough Council came under fire earlier this year for agreeing to purchase the town’s Saddlers Centre shopping centre at a time when it was having to close public libraries to save money.

The hotel has said the move will not mean a change for its customers.

Ron Terry, general manager of Coombe Abbey, said it would business as usual despite the change of ownership.

“We want to reassure our clients and customers that nothing is set to change from the purchase,” he said.

“Coombe Abbey is viewed as a sound investment by Coventry City Council and they are incredibly positive about the future of the venue.

“The tremendous success of Coombe Abbey over recent years has led to the council deciding to take over the hotel.”

He said the existing team would continue to work hard to ensure the property remained a viable asset for the council and would provide an excellent return on the investment.

It is believed the council stepped in when the current owner announced his intention to retire and approached the local authority to see it was interested in purchasing the property.

The council has said it will not be operating the hotel directly, rather this will be the responsibility of a shareholders panel. It said this would help to generate revenue for the council to spend on services.