Carre Arms Hotel bought by North Kesteven District Council

The council has described the move as a means to: “secure a prestigious hotel business, protect jobs and broaden its economic and social benefits” in the town after the owners had been seeking to sell up for some time in order to retire after more than 20 years in charge.

The purchase of the hotel and its operating company for a total cost of just under £1.5 million followed a unanimous decision behind closed doors by Full Council on February 29 due to its commercially sensitive nature, with members agreeing there were significant advantages to the community in protecting this key local infrastructure asset, which could otherwise be lost as a viable business.

There had been concerns that the hotel could be lost and turned into a care home meaning an even greater shortage of hotel beds provision in the locality, according to the council.

The acquisition used funds from a previous pilot project to retain a greater share of business rates for local use. It assists the council’s ambitions for town regeneration and to expand the visitor economy – being one of only two hotels in the area with more than 10 rooms. They also hope to enhance its viability as an accommodation, conference and functions provider.

Council Chief Executive Ian Fytche said the opportunity was something they: “could not afford to pass over”, saying: “For more than 12 years we have recognised the need for expanded hotel provision in order to meet existing and growing demand for business and visitor accommodation, but that is something that the private sector has not been able to provide. That reality, allied with the broader aspirations of the Sleaford Masterplan and the council’s wider strategic interests in redevelopment opportunities in the immediate area of the Carre Arms, have led to the council taking this proactive intervention. It is an action entirely consistent with legal and financial frameworks and will ultimately support the council in both delivering on its objectives and maintaining its own ongoing viability, just as its established Lafford Homes housing company does.”

He said customers will see no immediate difference to hotel operations or staff.