Council responds to Coombe Abbey value plunge

Coventry City Council has responded to claims that the value of Coombe Abbey has dropped by 88%.

According to a council report seen by the BBC, the luxury hotel purchased by Coventry City Council for £9.1m in 2017, is now worth £1.1m.

A spokesperson from the council told TheBusinessDesk.com that whilst Coombe Abbey has faced “unprecedented challenges” like the rest of the hospitality industry, it generated £1.2m for the council in the last financial year.

In a statement, the council said: “The ownership of Coombe Abbey does not make the business immune from the challenges faced by the entire hospitality industry. Therefore like the wider hospitality industry Coombe Abbey has experienced difficult trading conditions and has faced unprecedented challenges.

“This means the technical valuation of the business based on that period was always going to be significantly reduced. And of course that’s only relevant if we had plans to see – but we do not.

“Business is improving and the hotel is meeting its commitments to us – generating £1.2 million for the council in the financial year 2022/23.

“It employs over 400 people and the wider country park it is set in, continues to attract tens of thousands of visits from city residents and from those further afield every year.”

Coombe Abbey is one of a range of assets in its portfolio that collectively has brought in profits every year and has been “crucial” in aiding cuts in core funding over the last 13 years, “which totals more than £100m every year”.

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”.