January marked a major milestone in Gloucester’s transformation. Cabinet approved the final stage of the King’s Quarter regeneration, paving the way for the opening of Hotel Indigo at The Forum, a stylish new addition set to redefine the city’s hospitality scene.

This wasn’t just about opening a hotel; it was about investing in Gloucester’s future. In 2022, plans were laid for the Council to provide a commercial loan of up to £4 million to the council-owned company operating the hotel under an agreement with IHG (InterContinental Hotels Group). That commitment was confirmed this January. The loan, sourced from the Public Works Loan Board, covered pre-opening costs and working capital, ensuring the hotel launched smoothly and met the high standards of the Indigo brand. Importantly, the Council retains ownership of the property.

A reliable revenue stream

Why take this step? Because the numbers made sense. The arrangement was designed to deliver a strong long-term return. Borrowing costs were covered, and interest on the loan generated a surplus to strengthen the Council’s finances. From 2027/28, a guaranteed rental income of £500,000 per annum begins, creating a reliable revenue stream for years to come. Beyond that, performance-linked dividends are expected once the hotel proves its financial stability.

But this story isn’t just about balance sheets. It’s about ambition. The Forum is a transformational development for Gloucester; a vibrant hub combining a new transport interchange, multi-storey car park, high-tech offices, apartments, and retail spaces. Hotel Indigo is its crown jewel, bringing a premium hospitality experience to the heart of the city.

When the doors open in February, it isn’t just a hotel launch; it is a statement. A statement that Gloucester is ready to compete with the best, attract visitors, support local businesses and showcase itself as a modern, thriving city.

The King’s Quarter regeneration is now complete, but the journey doesn’t stop here. With plans for Greyfriars Quarter and a bold City Centre Masterplan on the horizon, Gloucester is writing a new chapter of growth, vibrancy and opportunity.