Cornwall Council accused of 'ineptitude' over perilous £28m Marriott hotel plan

The plot next to Newquay airport earmarked for a Courtyard by Marriott hotel and conference centre
-Credit: (Image: Vickey Holman)


We understand there is "deep concern and disquiet" on the part of one of the world's biggest hotel chains over Cornwall Council stalling a £28 million project to build a major hotel and conference centre at Newquay airport, which would support hundreds of jobs in the area.

A source tells us that since the council started forging ahead with a joint venture partnership deal to run the airport and develop its 650-acre estate, the local authority has taken its eye off a previous deal with Marriott Hotels International and Fairbairn Capital, which now threatens the prospect of a Courtyard by Marriott hotel and major conference facilities being built next to the airport.

The hotel group and its financial backers have been told by the council that it is unable to proceed with Marriott's proposition because the Land Use Blueprint (LUB) and partnership being discussed under the terms of an exclusivity agreement with Adynaton Asset Management LLP have not yet concluded.

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A leading local businessman who is aware of the Marriott plans, and wants to remain anonymous, accused the council of "ineptitude" by possibly scuppering a previously agreed project, which could bring tens of millions of pounds into the Cornish economy.

The council had been in talks with Fairbairn about bringing the first Marriott hotel in Cornwall to the airport in late 2022 after the local authority's agents Vickery Holman marketed a 1.55-hectare site at the Aerohub Business Park, adjacent to the airport, for use as a hotel with planning permission attached.

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A formal offer was made to the council in December 2022, with heads of terms agreed the following February. "There then followed a back and forward with the council - no one seemed to know who was dealing with it," a source told us.

In May 2023, the council stated it wanted to change the deal to a lease rather than virtual freehold, so it would receive a long-term income rather than a one-off capital receipt, which was agreed.

A company called CBRE then entered the equation - the global real estate company was hired by Cornwall Council to search for a financial partner to run the loss-making airport and develop its grounds. In June 2023 a meeting was held with CBRE to finalise revised heads of terms for the Marriott hotel scheme. A "best and final offer" was agreed at board level in July 2023.

Sources close to the project then describe the ensuing 12 months as challenging with little communication or engagement from the council.

In May 2024 an email was sent from the council confirming the way forward was clear. Since then there's been virtual silence and a lot of stalling, say our sources.

The following month the council's Conservative Cabinet approved the airport strategic review, which includes minutes in the public domain stating that the council's arm's length company Corserv and CBRE had advised that any proposed land transactions should be paused that were not already being progressed. Those behind the Marriott project believed this meant their scheme would still continue.

In August they received word from the council's economic growth department that it was "unable to proceed" with the Marriott proposition, but it could re-engage if the airport partnership does not proceed. The partnership with Adynaton is due to be ratified in November. This risks the whole hotel development ever happening.

The council stated that it had to make strategic decisions about the whole site and not individual plots. Since then meetings have been sought with senior council officers by those involved with the Marriott deal but no response has been received.

We understand that Fairbairn / Marriott are already a quarter of a million pounds into the project with plans to employ a range of Cornish workers for around 200 all-year jobs.

The Marriott saga is well known among the business and political community in Cornwall. One renowned local businessman, who did not want to be named, said: "Why there has been such a lack of any meaningful engagement with the prospective developer who could deliver a long-term £200+million investment and hundreds of jobs into the airport by bringing a major hotel deal to the table, is frankly astonishing.

"I’m also aware that other significant (£150+ million) cutting-edge investment opportunities have been similarly neglected by the council, leading their promoters to now explore other sites outside of Cornwall.

"These kinds of potential investment opportunities don’t grow on trees. The council needs to grasp this kind of opportunity with both hands and roll out the red carpet to give developers the confidence that Cornwall is worthy of their time and investment. Other regions do this competently and deliver the investments that are so important to economies, communities and jobs, why is Cornwall apparently getting this so wrong?"

Another businessman added: "This is yet another example of Cornwall Council incompetence and ineptitude. One has to recognise Cornwall Council's dismal track record in the delivery of economic development. Langarth, Pydar Street development and now the airport debacle to name but a few and notwithstanding the outrageous car parking charges that are destroying the viability of town centres."

Our source believes it is clear that proceeding with the Marriott hotel would not adversely affect any possible airport scheme / development and would in fact be a big positive for Cornwall. The hotel group is aiming for an opening summer 2026 if hurdles are removed and have evidenced their funding and construction team.

We have seen communication between the council and various interested parties which backs up the comments made by concerned parties.

Cllr John Conway, who has tabled a motion for a vote of no confidence in Cornwall Council leader Linda Taylor, said of the Marriott deal: "None of us knew about this until about a week ago. This is something that has been kept from all of us. They reckon Marriott would be paying about £150,000 a year in rent. A development like that would draw people into the airport and the industrial estate they're building around it.

"This is an example of why we've got no confidence in Linda Taylor. She's not telling us the full story."

We have approached Marriott International's press office for comment, but have not received a response.

A spokesperson for the local authority said: "Cornwall Council is continuing to work to secure the long-term economic future of the airport, focused on providing the best possible value for money for our residents. We cannot comment on individual negotiations due to business sensitivities."