He says the purchase is an investment that is part of a new strategy to help pay for council-run services for local people.
“The acquisition of the hotel in Keighley is just one way we are looking to increase our revenue income to sustain services,” said Coun Jeff Summers.
“This, along with a continued drive for efficiencies, will ensure the council has a sound financial position over the next five years and beyond.
The council has paid £2.35 million for the hotel. It says this is “funded from internal borrowing, which means it is suppported by the council’s own cash”.
The building is a Travelodge and will continue to be run by the hotel company. The council will act as landlords and expects the business to provide a net income of about £90,000 per year.
“We have held commercial properties for some time, but this is the first outside our district boundaries,” added Coun Summers. “It is a new step for the council, but we are confident the decision will be in the interests of our communities.”
West Lindsey has been looking for new ways to generate income after grant funding from central government was reduced by £4 million.