Slump delays £70m hotel development
The creation of a £70 million hotel and office block complex in Wolverhampton has been delayed until next year, developers said today.
The creation of a £70 million hotel and office block complex in Wolverhampton has been delayed until next year, developers said today.
Citygate Plaza, in Fordhouses, had been due to open in 2009 with the creation of 2,000 jobs.
But Fred Pritchard, of Hednesford-based developers Pritchard Group, said the economic climate meant that work had been delayed on the Stafford Road site until 2011. It is the latest delay to hit the long-awaited scheme, which was first granted planning permission back in 2008.
Mr Pritchard said his company would be monitoring the state of the economy to see when further action could be taken.
"We have had to put work back to 2011 because of the economic climate," he said.
"We are watching things closely though, and when the climate is right we will be looking to move the development plans along."
He added that an agreement had been reached for the present occupiers of the site to stay put until there is more information about when work can start.
A 60-bed Travelodge hotel, a restaurant and office space will be created as part of Citygate Plaza, which will be built near Junction 2 of the M54.
A 250,000 sq ft office space, known as The Hub, is at the centre of the development.
The scheme has been described as a "jewel in the crown" for the city and was the result of months of talks between the developers and the council.
The city council has already given outline approval for a separate £7.5m hotel and business park in Stafford Road.
Coven-based ASK Developments Ltd is behind the scheme, which will create a 63-bed hotel and two office blocks for rent.
In a report being presented to the council tonight, Wolverhampton Development Company (WDC) is due to update the council on its work and the major development projects going on in the city.
WDC had hoped that work would start in spring this year.
The report says: "Having received planning consent in the summer of 2009 it is hoped this innovative development of hotel and start-up business space is likely to start on site in spring 2010."
