Whitbread PLC have decided not to go ahead with the building of a Premier Inn on the site of the former Marks & Spencer store in Dorchester’s South Street.
A spokesperson for the company said:
“When we acquired the site, we believed there was a strong opportunity to bring a new 102 bedroom Premier Inn to Dorchester Town Centre. The consistently strong performance of our existing hotel at Brewery Square, combined with growing demand for accommodation in the area, reinforced our confidence in the long term potential for a second Premier Inn in the town.
“However, the environment in which we operate has changed significantly since. Construction costs have risen across the development sector, and external cost pressures – including recent increases to business rates for hotels – have impacted the viability of new hotel developments.
“Considering these factors, we have concluded that the proposed hotel at South Street is no longer viable for us. We will therefore begin marketing the site in the coming weeks.”
Steve Bulley, President of Dorchester Chamber for Business, said:
“While it is disappointing to see Premier Inn’s plans for the South Street site not progress, we recognise the challenging economic environment affecting development across the sector.
“This will result in an opportunity for potential mixed use for the building, with retail on the ground floor and accommodation on the higher floors, which is much needed in the town. This kind of development could bring increased footfall to South Street while also helping to address the demand for town centre living.
“We remain optimistic about the future of Dorchester and will continue to support initiatives that strengthen the vitality and resilience of our town centre.”
