A FOOD distribution company’s bid to open a hotel on a Newport industrial estate has been dashed after city council officers refused planning permission.

Euro Foods Group want to open a chain of budget hotels across Newport and Torfaen, with a 14-bedroom hotel at Reevesland Park industrial estate the first of three planned sites.

But planning chiefs say the out of centre location is at odds with planning policies, adding that the venture brings “limited regeneration benefits”.

The decision was described as “very upsetting” by the Cwmbran-based firm, which intends to appeal.

Under the plans, empty office space above the Euro Foods cash and carry would be converted to provide en-suite bedrooms and a self-service breakfast bar.

A council report says: “This application relates to the change of use of a building in employment use, and the proposals are considered to offer limited regeneration benefits.

“Given the out of centre location, it is not as sustainable as an in-centre location and users of the hotel are therefore more likely to access it by motor vehicle.


“This is contrary to the transport hierarchy promoted by Planning Policy Wales, which places pedestrians first.”

In June, councillors gave their unanimous support to transforming the former TJ’s music venue in Clarence Place into a 58-bed easyHotel.

A hotel could also be built within the former HMRC tax office at the nearby Crown Buildings, though no decision has yet been made.

While both schemes are outside the city centre, council officers say they are much closer than the hotel proposed by Euro Foods.

“Furthermore, there were significant regeneration benefits in both cases which carried weight in favour of the proposals in those instances,” says the report.

A city centre hotel forms part of Euro Foods’ wider attempts to break into the hospitality sector, with a third hotel also planned at their main site in Llantarnam.

Senior figures say the chain would capitalise on a “shortage” of accommodation to support the International Convention Centre Wales at the Celtic Manor Resort.

But the rejection of the first hotel has dealt a blow to these aspirations, with a statement saying: “This is very upsetting.

“Newport is 2,000 beds short due to the ICC Wales, yet Newport City Council won’t give planing permission for the hotel. We shall appeal.”