A SUCCESSFUL hotelier has criticised Swindon Council’s plans to bring yet another large-scale hotel to the town centre.

Eddy Shah, the former newspaper tycoon, who owns and operates the Wiltshire Golf and Country Club, in Wootton Bassett, said the plan to build a 13,000sq m hotel on the site of the old police station, in Fleming Way, Swindon, is not viable considering other hotels are witnessing a fall in occupancy and room rates.

Any hotel on the site would be just yards away from a new Jurys Inn hotel, which was officially opened yesterday, a Menzies Hotel in Fleming Way and a Travelodge in Princes Street. There is also an Express by Holiday Inn in Bridge Street.

His comments come a month after the Adver published details about discussions between the council, Muse Developments and the New Swindon Company, to begin building on the site – which one third of is owned by the council.

If an agreement can be reached on the development, which would include a new health centre, a car park and 44 sheltered accommodation units, work would begin in the summer of 2010.

“I don’t think the business is there for another hotel,” said the 65-year-old. “There are already too many rooms in Swindon and I know they are not full.

“Most hotels, especially those in the town centre, gain the bulk of their money from conferences, and unfortunately bookings have fallen by about 80 per cent.

“There is a new conference centre in Wroughton and the reality is that many companies are now holding their conferences in-house.

“My message to anyone planning to build a hotel in the town centre is – now is not the time.”

He added that De Vere Hotels, at the Shaw Ridge Leisure Park, recently began advertising a £19 room promotional deal on its website.

“Building another hotel in Swindon, when one has just opened across the road, would have an impact on neighbouring communities.

“My business has numerous different occupancy strands including weddings, golf, business and holiday makers, so we are doing all right, but I would guess others are not.

“I have planning permission for 50 more rooms, but I won’t start building until the economy and the hotel business stabilises.

”Swindon now needs to build for the future.”

However Coun Phil Young, Swindon cabinet member for culture, regeneration and economic development, said he was excited for the hotel would signal the start of the Union Square development – a £350m plan to transform land from Fleming Way to the railway station over the next 15 to 20 years.

He said: “In some ways we sympathise with what Mr Shah is saying, but if there is an operator out there who thinks there’s money to be made then I don’t think it is our role to step in and say ‘no, sorry guys, that is not what we are looking for’.

“If the market was saying that retail would work then Muse would be working to bring home that development.

“If an operator comes forward then that must mean the market can handle another hotel.”

However, some hotels are facing difficulties. The Liddington Hotel and Conference Centre, in Foxhill, near Wanborough, and Folio Hotels have both recently gone into administration.