Cornwall Airport Newquay facing local fury (Image: Getty)
A major project in a aimed at amplifying the local economy is now on hold – and local residents are far from pleased.
A previous deal with Marriott Hotels International, one of the world’s biggest hotel chains, and Fairbairn capital is now under threat due to the council advancing with another joint venture partnership deal to run
The previous deal with the hotel group would have seen the prospect of a Courtyard by Marriott hotel and major conference facilities being built next to the airport which would create hundreds of new jobs for the area.
However, the hotel group and their financial backers have been told that they are unable to proceed with the proposed deal due to the Land Use Blueprint (LUB) and partnership being discussed under the terms of an exclusivity agreement with Adynaton Asset Management LLP which have not yet concluded.
Cornwall Council has been in talks since 2022 with the private equity company Fairbairn about bringing the first Marriott hotel to Cornwall following a 1.55-hectare site being marketed adjacent to Newquay airport, with planning permission for use as a hotel attached.
A formal offer was then made to the council in December 2022. In February 2023, heads of terms were then agreed.
An inside source told Cornwall Live: “There then followed a back and forward with the council – no one seemed to know who was dealing with it.”
In May, the council then decided to change the deal from a virtual freehold to a lease, which was agreed.
Cornwall Airport Newquay next to potential hotel deal (Image: Getty)
Following this, Cornwall Council hired the global real estate company CBRE to search for a financial partner to develop its grounds due to the loss the airport was making.
In June 2023 a meeting was held with CBRE to finalise revised heads of terms for the Marriott hotel scheme. A “best and final offer” was agreed at board level in July 2023.
Since then, sources have described the next 12 months as having little communication or engagement from the council.
The hotel plans drifted further into the distance following a strategic review in June where the council’s arm’s length company Corserv and CBRE had advised that any proposed land transactions should be paused that were not already being progressed. Despite this, the Marriott Hotel group still believed their scheme would continue.
Cornish town near Cornwall Airport Newquay (Image: Getty)
August of 2024 was the final blow for the hotel group when they received word from the council’s economic growth department that it was “unable to proceed” with the proposition, but it could re-engage if the new airport partnership does not proceed. The partnership with Adynaton is due to be ratified in November.
Locals are furious at the council’s decision, with one local businessman saying: “These kinds of potential investment opportunities don’t grow on trees. The council needs to grasp this kind of opportunity with both hands and roll out the red carpet to give developers the confidence that Cornwall is worthy of their time and investment.”
Express.co.uk has approached Cornwall Council for comment.