Hotel chiefs attack Crossrail tax

Grant Prior 14 years ago
Share

Hotel developers have hit out at plans to tax new schemes in London to help pay for the £16bn Crossrail scheme.

Hotel giants including Travelodge, Holiday Inn, Crowne Plaza and Intercontinental Hotel Group have written to London Mayor Boris Johnson warning him that his “hotel tax” plan could put new developments in doubt.

Developers are due to contribute £600m towards Crossrail. Only office schemes were due to contribute but that has now been extended to retail and hotel schemes in central London and Docklands.

The hoteliers believe the levy would add between three and four per cent to the cost of a new hotel.

Travelodge has 17 sites it wants to develop in the next 10 years but says the levy would add £9m to its bill.

Chief executive Grant Hearn said: “With the Olympics set to raise London’s profile around the world, introducing a tax which will slow down the development of new hotels is counter-productive.”

Whitbread chief executive Alan Parker said: “This could cost us over £2m. It’s a last-minute change which has pushed up our construction budget by five per cent.

“We’re still going to go ahead because we’re committed, but we have to reclaim the money back somehow and unfortunately we’re going to have to pass on the extra cost to customers.”

The complaints came as Johnson warned that the future of Crossrail is not yet “signed, sealed and delivered” amid continuing fears the scheme could be scaled back or delayed.

Latest news

Development firm fails hitting London building team for £2.6m

Luxury flats builder Ant Yapi was contracted to redevelop Westminster Tower site
4 hours ago

Government set to fund £1bn final HS2 London tunnel drive

Final tunnel drive to be taxpayer funded upfront with cash recouped later
4 hours ago

Amazon fires up Big-Box market with £500m job

Next generation triple floor super-shed to be built near Northampton
5 hours ago

Stricken road sweeper specialist rescued

Parts of hire specialist Go Plant bought out of administration by Sweeptech
5 hours ago

Costain highways lead joins Buro Happold

Paula Gough appointed to UK Development Director for Infrastructure
5 hours ago

G&H Group lands £20m+ M&E package from JJ Rhatigan

100-strong specialist team to start on West London site next week
5 hours ago

Bidding open for £800m professional services deal

Procure Partnerships encourages SMEs to bid with 9 regional lots
5 hours ago

Construction buyers see fastest growth for 14 months

Commercial building work leads the way in April
1 day ago

Go Modular Technologies files administration notice

Southampton bespoke volumetric specialist employs around 60 staff
1 day ago

Cladding firm went down owing supply chain £7.7m

Debts revealed at Everton stadium cladding contractor Alucraft Systems Ltd
1 day ago

Rydon dogged by legacy fire safety remediation costs

£19m spent on fire safety remediation work to date
1 day ago

Carpenter killed by falling timber frame panels

Court fines specialist contractor £8,000 after site tragedy
5 days ago

Trio of builders win King’s Award for sustainability

Henry Brothers, Willmott Dixon and ZED Pods recognised for sustainability
1 day ago

Kent police seize huge haul of stolen site tools

Hunt for power drill fitted with tracker busts tool theft ring
1 day ago

Robertson names new Northern construction chiefs

Ian Phillips promoted and Ricky Brown joins from Morgan Sindall
1 day ago

Road sweeper specialist files administration notice

Go Plant lodges court notice
5 days ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
5 days ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
5 days ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
5 days ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
6 days ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
6 days ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
6 days ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
6 days ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
7 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
6 days ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
7 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
6 days ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
6 days ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
1 week ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
1 week ago

Contractor services