Coventry Council owned luxury hotel sees value plunge

Leaked documents have revealed that a luxury hotel owned by Coventry City Council has dropped in value by 88% since the council acquired the asset.

Coombe Abbey, bought by Coventry City Council for £9.1m in 2017, is now worth just £1.1m, according to a council report seen by the BBC.

The Warwickshire venue operated by No Ordinary Hotels has also lost £1.4m a year over the last two years, resulting in a complete lack of dividends for the council.

A private report detailing the authority’s private investments also revealed that the value of waste manager Tom White Waste has fallen by almost a third. The council purchased the firm for £14.9m in 2020 and its value now stands at £10.6m.

According to the BBC, plans for a new recycling facility have been abandoned by Tom White Waste, despite £500k of a council loan already spent on the project.

Last month, the council said it could effectively declare itself bankrupt next year without additional funding from the government.

And in August, Cllr George Duggins (council leader) and Cllr Richard Brown (cabinet member for strategic finance & resources) revealed that local government stands on the precipice of financial disaster and Coventry is “facing the prospect of having to issue a Section 114”.

Coventry City Council has been contacted for comment.