The deal, which would be worth millions, could be agreed behind closed doorsCoventry City Council is in secret talks to buy Coombe Abbey Hotel in a deal which would be worth millions of pounds.
The local authority will meet to discuss the deal behind closed doors during the private part of a full council meeting scheduled for Tuesday.
Cllr Jim O’Boyle, the council’s cabinet member for business, has confirmed to the Telegraph that the purchase of the hotel will be discussed as part of the private agenda item headed ‘Project CAP’.
He also said the exact value of the deal being discussed could not be revealed ahead of completion due to legal restrictions on the council.
The local authority is already the freehold owner of the hotel, which means they own the bricks and mortar, but the council is now discussing the purchase of the property’s lease - essentially the hotel business.
Coventry City Council also owns the surrounding country park.
The hotel is currently owned by No Ordinary Hotels Ltd and Coombe Abbey Park Ltd, both headed by businessman Gordon Bear.
Cllr O’Boyle told the Telegraph: “Yes we are discussing the potential purchase of Coombe Abbey Hotel. Yes it is due to be discussed as part of private business at full council.
“We are already the freehold owners and we have been for many years. We are only just realising that asset now.
“In the late 1980s / early 1990s we did a deal with the current owner Gordon Bear because it was a Grade 1 listed building and it was costing us money.
“It was dilapidated. It had no roof and was falling down. We had responsibility to maintain it.
“But I believe it is now an asset rather than a liability.”
He added: “It will give us revenue, something close to a 10 per cent return.
“No other investment we come across would net that kind of return for the taxpayer.
“We believe it’s a good return for the taxpayer.”
Asked if the council would be involved in the running of the hotel, Cllr O’Boyle said: “The council will not be running the hotel.
“We will be the one and only shareholder, but it will be run on our behalf.
“There is already a team running the hotel and we would like to retain that team. We would appoint someone to run it on our behalf.
“The council has no business running hotels and that’s why we would get someone to do it on our behalf.”