The cost of re-developing Huddersfield’s historic George Hotel has spiralled by 50% in two years to £30 million.

In October 2022 Kirklees Council’s Cabinet allocated £20.2 million to the project but that figure has now ballooned to £30 million.

The council has planning permission to create a 91-bedroomed hotel but couldn’t reach agreement with its preferred contractor over the costs.

Instead it went to another contractor and has gone back to the drawing board to make changes to the original plans to make the sums add up.

Now the hotel will have 108 rooms which consultants say could average £100 to £110 a night instead of the earlier estimate of £80-£90 a night.

There is good news for the council, however. Hotel operator Radisson, which has signed a deal to create a Radisson RED boutique hotel at the George, is still firmly on board though will have to agree to wait a bit longer for the completed building.

The council had said the hotel would be ready by December 2025 but, with a two-year build and a new planning application to be submitted, the timescales have slipped.

If the council goes ahead, it could be May 2025 before planning permission is obtained and July 2025 before construction work starts with the new hotel opening in summer 2027.

 

 

How the George could look inside as a Radisson RED

 

A report to the council’s Cabinet on Tuesday November 5 says the costs of the scheme have risen for several reasons.

Firstly, construction costs generally have risen by 18% since Spring 2021 and another £3 million-worth of unexpected works are needed including the removal of asbestos in the basement and under-pinning of the façade fronting John William Street.

Working with a new contractor, changes to the internal layout are proposed including removing an atrium and creating rooms on the ground floor.

The council will find the extra £10 million from the £262 million Our Cultural Heart budget and pay for the hotel over 30 years instead of the planned 20 years. The council will continue to own the hotel and receive rent from Radisson.

The recommendation to Cabinet is to go ahead with the re-development and council leader Carole Pattison said last week the council had “come too far” to turn back now.

The report says that the council has already spent £4.6 million on repairing the building and making it wind and watertight and mothballing it would cost another £100,000 a year in security, insurance and maintenance.

Around £2 million had been secured in grants and that may have to be repaid if the hotel wasn’t completed.

The council bought the derelict grade II*-listed hotel in 2020 for £1.8 million and sees it as a key part of the regeneration of Huddersfield town centre.

It says the hotel could create more than 50 jobs and put £7.5 million into the local economy over 10 years.

 

 

Clr Pattison said: “Bringing this building back to life is one of our priorities within the Huddersfield Blueprint, and we’re unwavering in that commitment.

“This extra funding injection would see us re-open the George with more bedrooms than previously planned, helping the building itself generate more income.

“We want the finished hotel to be fantastic, because we know how much it’s loved by local people, and what a great opportunity this presents to boost our local economy and tourism.

“As with many of our regeneration plans – particularly projects which involve the refurbishment of such beautiful, historic structures – it’s a hugely complex process, greatly impacted by the current economic climate.

“What we’re proposing is a more streamlined vision for the hotel, with greater capacity and solutions that take better care of this beautiful building’s history.

“We know people love the George and want to see it given a new lease of life – in fact, should our recommendation go forward next week, we’ll be finding more ways to involve the public down the line in how the interior design of the new Radisson RED hotel could celebrate Huddersfield, its culture and history for visitors in years to come.”

 

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