Plans to build a budget hotel in St Andrews have received a frosty reception despite promises of substantial investment and a jobs boost.
Amid concerns existing accommodation providers in the town are struggling to fill their properties, business leaders insist there could ultimately be a devastating impact on the Fife town’s vital hospitality trade.
Travelodge, which operates 40 hotels in Scotland, is looking for a suitable site for a 120-bed hotel in the town.
The firm is also considering other locations in the country including Oban, Peterhead, Aberdeen, East Kilbride, Falkirk, Hamilton, Wishaw, Motherwell and North Ayrshire.
The St Andrews Bed and Breakfast Association, which represents 30 businesses in the town, reacted with dismay to the news, saying research had revealed bed and breakfasts and guesthouses were running well below capacity.
Secretary of the Fife branch of the Federation of Small Businesses (FSB), Janet Torley, said she too had concerns about the proposal.
“It is definitely a concern that a business of this kind coming into the town could take trade away from quite a few small hoteliers and B&Bs.
“Consumers do of course need to have a choice, however we would like to think the existing hospitality businesses do already offer a variety of quality accommodation.”
Travelodge chief executive Peter Gowers defended his company’s plans to invest in St Andrews and Scotland, stating the project represents an investment of £75 million and the creation of 200 new jobs.
He said: “At present, the value hotel market in Scotland stands at 14% compared to 18% in England and more than 30% in the US.
“By 2030, the budget hotel sector could account for almost a quarter of the UK market, with a similar level of growth expected in Scotland.”
Travelodge’s announcement that it is looking for a site in St Andrews comes just months after permission was granted for a 65-room Premier Inn at the former St Andrews abattoir buildings on Largo Road.
Prior to being approved, that planning application also raised concerns about the potential impact on existing bed and breakfast businesses, amid general worries that to approve the development would leave St Andrews with no effective employment land supply.