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27 January 2025

Ashall Hospitality to explore viability of Indigo branded hotel

The council has given its approval to enter into a £8m grant funding agreement with Ashall Hospitality (Blackpool) LLP. Ashall Hospitality will explore the viability of locating an Indigo Hotel at the listed former Abingdon Street Post Office.

Boarded up dilapidated ornate building.
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The transformation is set to be a £26 million development of which an £8 million grant has been approved.

The council applied for Levelling Up Funding, Round 2 (LUF2) in April 2022 for the refurbishment of the former post office on Abingdon Street into an Indigo branded hotel. The bid was initially rejected but then later approved in the budget in March 2023, under capital regeneration funding (CRF) .

Since then officers have been working with Ashall Hospitality to continue with the scheme, reviewing the project and the design, in the context of rising inflation and interest rates and revising the delivery model to mitigate these risks.

Cllr Mark Smith, Cabinet member for Economy and Built Environment said:

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“This beautiful listed building is in such a prominent position in the town centre and holds much nostalgia for residents its essential we explore all opportunities to give it a new lease of life. “It has been vacant for a long time now and I very much look forward to working with Ashall Hospitality, despite all the setbacks we have experienced and thank them for their tenacity and patience. “We need to find a suitable use for this building and I am determined to seize the opportunity to bring it back into productive use. “If the development is viable it will create new employment opportunities in the town whilst also maintaining one of Blackpool’ s many prized heritage assets."
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This council will release the grant funding in two phases:

Phase 1 – Viability stage - exchange of contracts on the building, whilst a number of surveys are carried out to determine viability of the scheme funded from the grant in instalments.

Phase 2 - Post viability stage – this element will incorporate completion of the building purchase and full construction phase using the balance of the grant funding.

The grant funding will be released in instalments further to the signing of the grant funding agreement with the council. The council is and will remain the accountable body with the Ministry of Housing, Communities and Local Government.

This project has received funding through the UK Government Capital Regeneration Fund (CRP) further to a successful bid application.

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