Hilton Garden Inn sale decision to go under public scrutiny but you will not be able to read much of the agenda
The public is to get a chance to take a closer look at the council’s decision to sell the Hilton Garden Inn – but with much of the paperwork classified as confidential the issue is likely to remain obscure.
Three councillors have just secured a review of the decision by Peterborough City Council’s ruling cabinet to instruct administrators Teneo to put the unfinished Hilton Garden Inn on the market and to sell to the highest bidder.
Construction of the partly built 160-bedroom was funded with a £15 million loan by the council to the developer in 2017.
The council is desperate to get as much of the £15 million back as possible but there is a dispute over the best way of securing the return of taxpayers cash.
But documents to be considered by the committee show that there will be at least 12 reports – all dealing with financial matters surrounding the sale of the building at Fletton Quays - that are marked as ‘restricted’ and can only be read by councillors.
Members of the public can attend the meeting but any discussion of those restricted documents, which have already been considered by the cabinet, will mean that the public will be asked to leave while the discussion takes place.
Yet the purpose of the call-in by Councillor John Howard, Cllr Marco Creste and Cllr Alex Rafiq is to carry out greater scrutiny of the decision to sell the hotel.
Among the exempt documents will be the valuation for the council of the building, a report on its market value, the outcome of an earlier ‘soft marketing’ exercise, an outline of costs incurred so far as well as legal advice received by
the council in relation to the administration and possible acquisition and disposal of the site.
Councillors Mohammed Jamil, Cabinet Member for Finance and Corporate Governance, has said it is unlikely that the council till recover all of the loan.
But he has said that any money from the sale will help to reduce the local authority’s half a billion pounds debt.
He said: “The hotel is currently in the hands of the administrators and, if they are asked to sell the asset, it is vitally important that commercial confidentiality is maintained so they can carry out their negotiations with potential buyers effectively.
"Disclosing the exempt information could hamper that process and the council is also entitled to protect the confidential legal advice it receives.
He added: “Some of the information that is exempt may one day be put into the public domain, but at this time we consider it is in the best interests of the council and its residents for the information to remain confidential as we seek to get as much money back as we possibly can."
Conservative Cllr Howard said: “It is such a big decision that it is important we get it right and it is a decision we can only take once and it must be the best decision we can make.”
The meeting of the Extraordinary, Call-In, Sustainable Future City Council Scrutiny Committee will take place at Sand Martin House on October 20 at 3pm.
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 to meet to review decision to sell the hotel.