The Coventry councillor responsible for regeneration has defended plans to spend more than £1m of its own money to clear a site in the city for a new luxury hotel.
Jim O'Boyle said: "It's actually a risk that we don't do this, because we won't have beds available for people who come into the city."
Mr O'Boyle did accept that all investments are a risk, but added: "People have been telling me for years and years and years we've not had a decent hotels in our city centre for 40 or 50 years."
Indigo Hotels have been lined up to build on the Friargate site and the money will be used prepare it for use.
Mr O'Boyle said it was difficult to bring in private investors interested in projects like this.