Peterborough council pauses plans to bid for Hilton Hotel as new offer comes forward
The council had planned to submit its own bid
An offer to take on the Hilton Hotel project in Fletton Quays has come forward from a “third party”, Peterborough City Council (PCC) says.
It’s not yet known who has submitted it.
Council leaders said this week it was too early to make a decision on whether the bid to the hotel’s administrations should be accepted, but that the issue will be discussed again on Friday, 22nd March.
PCC had planned to submit its own credit bid for the hotel, up to the value of its original loan to developers plus interest, but has paused these plans while the new bid is considered.
The council bid would be for around £17m.
Whoever takes on the hotel will have to oversee its completion, which the council estimates will cost around £14.4m.
The hotel project has suffered repeated delays since PCC put forward its £15m loan in 2017, before developers were finally taken into administration in November last year.
Work on the hotel stopped and it was believed the contractor and owner of the company had run out of funds, despite repayment of the council’s loan being due in December.
PCC says it wants to see it completed to protect its investment in both the hotel and the wider embankment regeneration.