Hilton Hotels vows it's still 'committed' to Peterborough hotel despite uncertainty over its completion
No construction work has been carried out for a year
Bosses of Hilton Hotels have confirmed they are still committed to Peterborough’s Hilton Garden Inn despite continued uncertainty over the building’s completion.
The reassurance comes after Peterborough City Council agreed earlier this month to sell the nine-storey hotel at Fletton Quays to an unnamed operator subject to the completion of due diligence.
A spokesperson for Hilton Hotels said: “Hilton remains fully committed to working with all stakeholders to ensure the successful delivery of the Hilton Garden Inn Peterborough.”
Cecilie Booth, the council’s Executive Director for Corporate Services and Section 151 Officer, said: "Our discussions with the buyer are for the hotel to be completed and opened as a Hilton, in line with the original plan."
The council’s decision to sell the unfinished building followed a period of uncertainty after it had taken the original developer into administration in October last year after months had passed without any construction work being carried out.
Following administration, the council, which had lent £15 million to the developer to get work under way in 2017, was given control of the hotel after submitting a £17 million credit bid – made up of the loan and interest - to the administrators.
Councillors had considered overseeing the completion of the construction.
But the council’s own budget crisis – it faces an £11 million overspend in this financial year – persuaded members of the ruling cabinet that the best course of action would be to sell the building.
Selling the unfinished £30 million hotel will allow the council to recover its loan.