Leeds hotel scheme will still go ahead

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THE LEEDS City Region Local Enterprise Partnership (LEP) has issued reassurances that work on a new flagship hotel will continue, despite GB Group Holdings entering into administration.

The LEP announced in 2013 that it had given GB Group Holdings loan funding of £4.8m, from its £36m Growing Places fund, to help build the new Hilton hotel near Leeds Arena.

On Monday GB Group was put into the hands of administrators - BDO, resulting in 350 job losses at the developer.

A spokeswoman for Leeds City Region LEP said: “While we are sad to learn that GB Building Solutions has gone into administration, the LEP has provided loan funds to Oxford GB Two Limited – a separate company, which is understood to be still active and committed to the hotel project.”