A decision to sell the partly-built Hilton Garden Inn is to be challenged today by Peterborough councillors
An eleventh hour bid will be made today to try and retain some control by Peterborough City Council over the future of the unfinished Hilton Garden Inn.
A trio of councillors have secured a review of a decision by the council’s ruling cabinet to instruct administrators to sell the nine storey building at Fletton Quays on the open market to the highest bidder.
The three Conservative councillors, Cllr John Howard, Cllr Marco Cereste and Cllr Alex Rafiq are demanding a chance to scrutinise the financial details that are at the heart of the cabinet’s decision, which was made on October 2.
Twelve documents containing financial details about the building and the costs of completing it and the likely sale price were all marked as confidential.
Cllr John Howard said the aim was to give further scrutiny to the issues around the sale.
In the notice calling for the review, the three councillors state: “The high level of exemptions in the papers makes scrutiny difficult for non-cabinet member.
It adds: “We want to look at possible outcomes and see how a bidder auction can meet the best value test.”
"We want to ensure the council looses the least amount of money and makes the most amount of money.
"We want to keep to the original vision of a high-end hotel rather than risk another use that the council will have no control over after the sale.
The notice flags up the possibility of a finding a commercial partner to complete and operate the hotel and which would bring the council an income over a longer time.”
But Cllr Mohammed Jamil, the council’s cabinet member for finance and corporate governance, has warned delay in selling the hotel is costing the local authority £40,000 a month in interest on the £15 million loan the council gave the hotel developer in 2017.
The decision will be reviewed at a meeting of the council’s Extraordinary, Call-In, Sustainable Future City Council Scrutiny Committee, which will take place at Sand Martin House on October 20 at 3pm..
Why is the Hilton Garden Inn up for sale?
Councillors agreed to sell the Hilton Garden Inn in a bid to recover as much as possible of a £15 million loan the local authority made to the developer in 2017.
Although construction work finally began in 2022 it was not long before the developer, under pressure from the Covid-19 pandemic and rising construction costs, ran out of money and work stopped.
The council, as the primary secured creditor, took the developer into administration in October 2023.
After months of considering various options for the building, the council has agreed it should instruct the administrator, Teneo to sell the building to a buyer which will deliver the best value to the local authority.
That decision will be reviewed at a meeting of the council’s Extraordinary, Call-In, Sustainable Future City Council Scrutiny Committee, which will take place at Sand Martin House on October 20 at 3pm..
Timeline for Peterborough’s Hilton Garden Inn
This timeline highlights the route to the tough decision now facing the council’s new Labour-run administration.
September 25, 2017: A two year £15 million loan advanced for hotel with first drawdown in May 2020. (Pay back due April 2022) The loan was agreed for Norlin Hotels Holdings. A council reports states the hotel is expected to be completed in 2019.
October 2018: Councillors voice alarm as it’s revealed ownership of Fletton Quays Hotel has switched from Norlin to Propiteer Hotels. The loan to be paid out over 48 months from the time of first payment to Propiteer. The hotel is now due to be completed in 2020.
December 2019: Start of Covid-10 pandemic in UK
March 2020: UK goes into lockdown
May 2020: Construction work is due to start but cannot because of lockdown
Mid-July 2020: Construction staff on site. Completion of hotel is expected by November 2022.
March 2022: City council agrees FIRST extension for loan with term extended to 31st March 2023. Developer says it had not been possible to start work as planned.
April 2022: Topping out ceremony at Hilton Garden Inn. Hilton Hotels managing director says he expects hotel to be open by January.
February 2023: Website bookings being taken from July 17.
March 2023: Appointment of a head chef and a food and drinks manager is announced. Website bookings being taken from December 17, 2023.
March 13, 2023: Council agrees SECOND extension to loan taking it to the end of 2023.
May 2023: Work on site slowed and then stopped
July 2023: Website bookings now being taken from July 2024.
October 17: 2023: Peterborough City Council announces it has taken developer into administration.
March 2024: Councillors told council has earmarked £10 million in case further investment needed in hotel’s completion. Says if council takes control it would then have the option of selling the hotel after three to five years.
May 22, 2024: Council announces it is to seek approval from extraordinary cabinet meeting on May 30 to submit credit bid to assume ownership of hotel.
October 2024: Administrator Teneo seeks a year long extension to administration period.
January 9, 2025: Sale of hotel fails as would-be purchaser pulls out at 11th hour
September 8, 2025: Spokesperson for Hilton Hotels says the company is still committed to operating at the Fletton Quays building when completed
September 26, 2025: Council leader Cllr Shabina Qayyum says needs of residents must be prioritised over ‘vanity project’ Hilton Garden Inn
October 2, 2025: Council’s ruling cabinet to be asked to approve marketing and sale of uncompleted Hilton Garden Inn to highest bidder
October 20, 2025: Council Scrutiny Committee to meet to review decision to sell the hotel.
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