AECC writes off £2.3m but Aberdeen Council supports hotel plans

Aberdeen Exhibition and Conference Centre (AECC) and Aberdeen City Council are to plough ahead with plans for a four-star hotel for the site, despite having to write off £2.3m on the project.

AECC writes off £2.3m but Aberdeen Council supports hotel plans
AECC writes off £2.3m but Aberdeen Council supports hotel plans

AECC has so far spent £2.3million on architectural, legal and other professional fees on the scheme. City councillors agreed this week to grant the venue £568,000 to address the cash flow implications of writing off the sum, and to extend the repayment date of AECC's loan facility to 17 May 2017.

As a result of the Council's involvement the AECC has to change the make-up of its board.

The council’s backing, voted through by 24 votes to nine, rests on the fact it believes the hotel will bring huge revenue to the City.

"All of the professional advice we have received shows that a four-star hotel would boost AECC business and bring significant economic returns to the city," said Council leader John Stewart.

"The venue already contributes almost £80million a year to Aberdeen City and Shire – far outstripping the financial support it receives, which is far less that the investment of public funds enjoyed by the conference centres in Edinburgh and Glasgow."

Stewart described it as a "very good" return on public money and pledged commitment to the AECC’s plans.

The AECC has not had a particularly smooth recent history, facing close scrutiny in local press and earlier this year being forced to defend rumours it was set for receivership.

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