Councillors in Ellesmere have unanimously backed a bid to create a new hotel in the town as part of suggestions on how to spend a slice of £500,000 funds.

At last night’s Ellesmere Town Council meeting members expressed the “dire need” for a new hotel to open up to welcome visitors in the town in a bid to encourage tourism, create jobs and boost business.

The idea for a hotel is in its infancy and came about as a result of councillors being asked to come up with ways of how to spend a share of a new £500,000 fund under the Shropshire Council’s Market Towns Revitalisation Programme.

A feasibility study will now take place as part on the scheme, including finding out how much it may cost and where it would be situated, before going to public consultation in January.

Councillor Ann Hartley, Shropshire Council member for Ellesmere, said: “About four months ago discussions were held on the dire need for a hotel in the town.

“I think a hotel would tick all the boxes in Ellesmere and benefit a lot of other groups in the town.

“We need to hold a public event sometime in January to see what people think about the idea of a hotel and see if they want to make further suggestions on the best way to spend the money.”

Councillor Pat McLaughlin, mayor of Ellesmere, said: “The best example that illustrates the need for a hotel is the fact there were no beds available within a 30-mile radius of Ellesmere during this year’s triathlon.”

Lynne Davies, town councillor, said: “I think it is a really good idea. People organising weddings and other events have been forced out to places like Shrewsbury.”

Under the unitary council initiative, £2.5 million is being made available to support the regeneration of larger centres, including Market Drayton, Oswestry and Whitchurch.

A further £500,000 will be available for 11 other areas to bid for, including Ellesmere and Wem.

Shropshire Council members will work with local town and parish councillors and their communities to identify and prioritise projects that will make the most effective use of the money.

Bids for funding can be submitted up until March 2011.

By James Pugh