Edinburgh Council is set to lose thousands of pounds after hotel chain Travelodge had its rents slashed following the coronavirus outbreak.
The Times revealed that Edinburgh Council is among several local authorities set to "lose millions from dabbling in commercial property".
Edinburgh Council was among UK council that invested in a scheme in which councils purchase or build property that is then leased to the UK's second biggest hotel chain, Travelodge .
The council owns the capital's Travelodge hotel in the Ratho area and is understood to be the only Scottish council involved.
However, the council bosses is now huge losses after Travelodge negotiated a company voluntary arrangement (CVA) which will see its rent slashed.
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According to the paper, the chain managed to come to an agreement with 83% of landlords that its rent would be cut by 38% overall for 18 months after tourism industry was hit hard by the pandemic.
A Edinburgh Council spokeswoman confirmed to The Times that they face a 38% reduction on the rent but refused to give an exact figure on how much cash would be lost - though it is estimated to soar over £250,000.
