Confidence voiced that hotel developer will be found for Peterborough's unfinished Hilton Garden Inn
Commercial agents selling Peterborough’s partly-built Hilton Garden Inn have voiced their confidence that the building will be sold as a hotel.
The optimism for the future of the nine storey building at Fletton Quays comes just weeks after Peterborough City Council agreed the unfinished premises should be sold to avoid further financial losses to the local authority.
Administrators Teneo, who were called in by the council when construction stopped on the hotel in 2023, have instructed commercial agents CBRE to market the 160 bedroom hotel and seek bids from potential buyers.
And in a post on the CBRE website, its hotels director Paul Barrasford states: “We expect to receive strong interest from investors accustomed to developing large hotels and who are able to bring this important project to a rightful and successful conclusion.
He adds: “We are excited to have been appointed to secure a sale which will finally see completion of this landmark hotel scheme.”
The upbeat assessment of the market comes after some councillors who had opposed the decision to sell and had called on the council to oversee the hotel’s completion, had warned that the authority should not lose sight of the original vision for the project being the construction of a top grade hotel for the city.
CBRE has set a deadline of January 16 for bids to be submitted to buy the hotel.
But its sale prospectus warns that any buyer will need to invest more than £14 million to complete the hotel, which stands at the front of Peterborough’s £120 million regeneration flagship site.
CBRE’s sale prospectus for the building states: “The preference is for the hotel to be completed and operated as a Hilton Garden Inn (under Franchise Agreement), though other hotel branding proposals will be considered.”
It states that when completed, the Hilton Garden Inn will offer ‘extensive facilities including 160 bedrooms, restaurant, bar, meeting rooms, gym, and rooftop bar with external riverside dining.
The hotel building is not owned by the council, which took the developer Fletton Quays Hotel into administration in October 2023 after a prolonged period in which no construction work took place. But the £15 million loan made the council the primary secured creditor for the building and the local authority has instructed administrator Teneo to sell the property.
Hilton timeline:
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.
13 March, 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 agrees to carry on with sale of the hotel.