A CONTROVERSIAL deal to bring a multi-million-pound business class hotel to Basingstoke has been signed off by all the parties involved.

Basingstoke and Deane Borough Council (BDBC) and Village Hotels has exchanged legal paperwork to allow the American hotel chain to build a 153-room, business class hotel in Basing View, despite a judicial review on the matter still to be heard.

The move has attracted controversy but cabinet member for property and development, Councillor John Izzet, said the deal is a step in the right direction in terms of the regeneration of Basing View.

Cllr Izzet said: “If we are going to compete with places such as Reading for jobs and businesses we need to make sure that we have these high-class facilities in place.

“We are confident that this type of deal will bring more investment into the borough and that is what we want, to bring more money and more jobs into Basingstoke.”

The Village Hotels proposal, which includes a licensed pub, restaurant, Starbucks coffee shop, meeting and events facilities, state-of-the-art Village Gym with heated swimming pool, and on-site car parking, has come in for criticism, mainly for the financial impact the gym would have on the charity-run Basingstoke Sports Centre.

The Gazette launched a campaign in May to help raise awareness of the services at the centre and the risk posed by the hotel development. The Basingstoke Sports Trust, which runs the centre, said it was disappointed to hear the legal paperwork had been signed.

A joint statement from the centre’s chief executive officer James Starbuck and board of trustees chair Martyn Frost said: “The charity has no objection to developments that benefit the wider town and acknowledge that the council believes what they refer to as a ‘business class hotel’ will be beneficial for Basing View, [but] the council has failed to demonstrate that there is any unmet demand that requires such a significant additional leisure offering so close to the town centre.

“This is also not about us being afraid of genuine competition.

The charity’s understanding is that the development itself is unable to stand on its own commercially.

“Whilst the hotel is building the property at its own cost there must be a question mark over the commercial viability of the development that has resulted in the council agreeing a number of advantageous terms with Village Hotels such as a peppercorn lease for 250 years.”

However, cllr Simon Bound, BDBC cabinet member for communities and community safety said the two venues offer different packages and the council still wants to see the sports centre thrive.

Cllr Bound said: “As a council we have always supported the sports centre and we want to see them continue the great work they do for the community.

“We believe that the hotel will have a benefit in a different capacity, for example, creating a thriving nightlife for that area of the town.”

The construction of the hotel is subject to planning permission, and the proposal as a whole is still currently under judicial review, but if it is to go ahead Village Hotels believe it will create 100 new jobs in Basingstoke.

Village Hotels head of property Iain Stackhouse said: “That we’re successfully unlocking fantastic locations such as this site in Basing View really speaks to the quality and variety of the Village offer.”

However, this move forward has been called an “epic fail”

on BDBC’s part by leader of the Basingstoke Liberal Democrats cllr Gavin James.

He said: “It is deeply upsetting to hear that the borough has pushed ahead with this deal. We have already seen the Hilton pull out of the town because of the lack of demand for that type of hotel.

“We already have all the facilities in the town, so the need would be in budget hotels if anything.”

Leader of the Basingstoke Labour party cllr Paul Harvey echoed these thoughts saying it was “arrogance” from the borough council to sign off on the deal.

Cllr Harvey said: “The real problem is that a significant footfall will be lost from the town centre because of this deal, and this is not the first time a poor decision has been made.

“It seems decision after decision is being made by the borough council to have a negative impact on the town centre.”

The council is not paying any money for the hotel. Village Hotel is buying the 250-year lease upfront and will invest some £20 million.

If planning permission is granted, the hotel is expected to open in 2020.