Building work is underway to deliver a new £17m, 128-room hotel in the centre of Stockton on the site of a former dairy.
Mid-market chain Hampton by Hilton will operate the six-storey hotel following a 15-month build programme.
Stockton Council borrowed £17m to build the Church Road hotel, with the intention of leasing it to Hilton when work is completed in early 2019.
Construction firm Bowmer & Kirkland secured a £14.4m contract to build the hotel as part of Stockton’s ambitious Northshore development.
The council is funding the project to help kick-start developments plans for the area, drawn up by urban regeneration specialist Muse.
The 56-acre Northshore development is transforming the riverside through 450,000 sq ft of new commercial development and 200 new family houses.
The scheme’s first two commercial buildings – a headquarter offices for Thirteen Group and innovation centre Fusion Hive – are already up and running.
Although the scheme does have its critics, Cllr Nigel Cooke, Stockton Council’s cabinet member for regeneration and housing, Councillor, said: “This hotel will bring a famous global brand to the town, attract £6.7m per year into the local economy, and will be welcomed with open arms by local businesses and the North East England Chamber of Commerce, who have expressed overwhelming support for it.
“It will also complement the restoration of the Globe, our world-class events programme and, combined with our award-winning high street, ensure the town centre remains an attractive place to visit and invest.”
Patrick Fitzgibbon, senior vice-president for EMEA, Hilton, added “The council’s ambition and the award-winning regeneration of the nearby high street are extremely impressive.
“With a host of large companies located in the Tees Valley area, we expect the new hotel to lead the market.
“With companies including Tata, Axa, United Biscuits, Virgin Media and Fujifilm all located in the vicinity, we expect the new hotel to lead the market.”