North Yorkshire Council's forecasted return on investment for the Royal Baths in Harrogate is expected to fall to just 1.07%.

The council paid £9.5 million in 2018 for the Grade II listed building but a report by the local authority last year valued it at £7 million.

Besides the Royal Baths' decline in value, its ongoing poor investment performance has led to it being branded an "under-performing trophy asset".

The council's latest quarterly performance and budget monitoring group report revealed that on December 31 its forecasted return on the Royal Baths was 1.07%. This is down on the 1.64% forecasted return at the last quarterly update on September 30.

By contrast, the latest report indicates the council's other investment assets — Scarborough Travelodge, the Victoria Shopping Centre in Harrogate and industrial land in Harrogate — are expected to generate returns of 5.41%, 7.64% and 5.96% respectively.

The Royal Baths commercial portfolio includes the former Viper Rooms, the former Potting Shed bar, the JD Wetherspoon pub and Royal Baths Chinese Restaurant. The first two listed have both been unoccupied for some time.

The council declined to comment when the Stray Ferret asked what it was doing to improve the Royal Baths investment returns.

However, it announced this month it will relocate the Harrogate Tourist Information Centre from the Royal Baths to the nearby Royal Pump Room Museum, which could generate £30,000 to £40,000 a year.

Leasing it out would also save £24,300 a year on service charges, energy supply, maintenance, waste collection, cleaning costs and rates for the unit.

It also said this month it had accepted an offer on the Viper Rooms, but no further details have since been revealed and the site remains empty.

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