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.

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.

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.