Hoteliers demand to see documents on £32m Rose Bowl plan

1:53pm Thursday 1st October 2009

By Simon Carr

A HAMPSHIRE council has been given two weeks to throw open its books on the controversial multi-million-pound Rose Bowl project or face legal action.

This warning comes from hotel giants demanding to see top-secret documents after the Daily Echo revealed Eastleigh Borough Council had decided to stump up £32m of taxpayers’ cash for a 175-bedroom hotel and conference centre.

Authority bosses say the investment will make money, create 200 jobs, bring £20m to the economy per year and ensure the future of a world-class sports and entertainment venue.

Despite the possibility of a courtroom battle the council and the Rose Bowl have vowed to plough ahead with work.

Due to start today developers are behind schedule and work is expected to begin in the coming days.

Moez Janmohamed, Meridian Leisure Hotels boss, told the Daily Echo if the council had not released the papers or scraped their plans by the mid- October he will be teaming up with other giants and seeking a judicial review.

Speaking from Hong Kong he said: “I have been in constant contact with my legal team about this and we believe there are serious breaches of competition laws and the council’s obligation to get best value for the taxpayer.

“What business does a council have in setting itself up as a hotel – it beggars belief.”

He said business for Southampton hotels was in decline and this new council-backed accommodation would bankrupt small boarding houses in the city.

Councillor Keith House, head of the Lib Dem-controlled authority, said he was “astonished” by the hoteliers’ reaction but the council would compile the information asked for under the Freedom of Information Act as soon as possible and welcomed the scrutiny.

Cllr House and his partner Councillor Louise Bloom declared an interest earlier this year when the £30m investment was discussed in a Cabinet meeting as the pair had enjoyed free tickets and hospitality at the plush venue.

Full council was told about this investment but did not get the chance to vote until the cost rose by £2m last month.

Cllr House said: “I don’t think Meridian understand the proposal and when they do they will go away with a smile on their faces instead of a frown.

“I think they should be lapping it up – more people staying in Southampton is good for them, good for Eastleigh Borough Council, good for economy, good for everyone.

“I won’t speculate on their motives for complaining but to put it crudely people who want to stay in a four-star or higher Hilton are not the same market as those who want to spend the night in a two or three-star Holiday Inn.”

Rose Bowl boss Rod Bransgrove said: “We will not be stopping work because of this challenge. We are very confident in the legal advice we have been given and the procedure followed has been robust.”