Up to £5 million to be spent on Greenwich hotel for temporary housing

Greenwich Council are set to spend up to £5 million on block booking a Greenwich hotel via a third party.

The Radisson Red hotel on Tunnel Avenue will be used in a direct award of contract to Theori Housing Management Services Ltd.

In recent years the number of households in the borough classified as homeless has increased substantially from 443 in 2015/16 to around 2,000 today.

Exponential growth in temporary accommodation and emergency overnight accommodation. Now at 2,000

Last autumn Greenwich Council revealed they were spending £800,000 on booking Travelodge hotels alone. They also revealed that homeless numbers had risen 14 per cent on the previous year which follows large increases over proceeding years.

The council report in October 2023 noted: “a projected overspend on Emergency Overnight Accommodation (EOA), including hotels and units procured from specialist providers of nightly paid TA, of £11,430,200 is forecast, this includes additional budget funding of £3,000,000 to address inflationary cost pressures.”

This direct award to Theori is “on the grounds that competition is absent for technical reasons”. Greenwich state “The room rate offered is £112 per night, including breakfast for each occupant” with no 28-day limit as seen at other hotels.

Location

The site sits between the A102 Blackwall tunnel approach and Tunnel Avenue with a new distribution depot. Tolerable if a tourist. Less so for living.

Hotel on right. New distribution depot on left

The initial award is £2,144,240 for a period of 9 months with the option for extension taking the total cost to £5,005,840.

A lack of council and social housing is hitting councils across the UK. Neighbouring Lewisham council this week will see a Cabinet meeting discuss a £10 million cost overrun owing to temporary housing costs.

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J Smith

I've lived in south east London most of my life growing up in Greenwich borough and working in the area for many years. The site has contributors on occasion and we cover many different topics. Living and working in the area offers an insight into what is happening locally.

    3 thoughts on “Up to £5 million to be spent on Greenwich hotel for temporary housing

    • Why not just turn the building in to flats and self contained bedsits for people on the housing waiting list.
      Which would be a better use of the building. Rather than an hotel in a run down area of the Borough where public realm etc has been neglected for years. Would also be a better use of public money has giving people much needed homes.

      Reply
      • Sadly you are showing far too much common sense as well as signs of fiscal responsibility. You are not Greenwich Council material, begone sir!!

        Reply
    • I wonder how many pernament housing units could be built for £10 million?

      Reply

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