'I’m not convinced Peterborough Hilton Garden Inn sale is in our best interests,' warns councillor
A Peterborough councillor has justified a new move to halt the sale of the uncompleted Hilton Garden Inn, warning it might not be in the best interests of the city.
Conservative Councillor John Howard says it is vital that more consideration is given to a recent decision by Peterborough City Council’s ruling cabinet that the partly built Hilton Garden Inn at Fletton Quays should be sold.
Cllr Howard is among three councillors who have used council procedures to ‘call in’ the cabinet’s decision so it can be reviewed by a separate council committee.
He 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.
“At the cabinet meeting there were only 10 pages of information for public consideration. It’s not much detail for such a big decision.
"I think the issue needs more time to be properly considered and scrutinised.
He said: “I’m not convinced this decision to sell is in the best interests of the council and I want it to be scrutinised and the paperwork looked at in more detail.
“I think the council should see the building through to the end, and then maybe working with a partner, the council could still make money from it but over a longer period of years.”
The council’s cabinet agreed on October 2 that administrator Teneo should be instructed to sell the nine-storey hotel, which has stood idle for about two years after the developer ran out of money.
During that time damage has been caused by water and pigeon infestation.
The council is the primary secured creditor on the building having lent the developer £15 million eight years ago to kickstart construction work and is now trying to get as much of the cash back as possible.
The move to call in the sale decision has been backed by Conservatives Cllr Alex Rafiq and Cllr Marco Cereste.
Cllr Rafiq said: “I think it is a ridiculous decision to sell.
"It will be quite easy for someone to come along and buy it for say, £4.5 million, and then, without doing anything at all, just go on to sell it for say, £6 million.
"I fear this council will be happy to take any old bid just to get rid of the building and to move on.
"It is a new administration running the council and it seems to just want a fresh start and to get rid of any negativity.
"We need a long term investor which will put something back into the council.”
But the ‘call in’ move has been greeted with dismay by Councillor Mohammed Jamil, deputy leader of the Labour Group and Cabinet Member for Finance & Corporate Governance, said: “I am disappointed that they are blocking something that we see as progressive and that was a mess their group created in the first place.
He said: “Anything that involves a cost to the council is not an option any more.
"It is very sad – we really do need to get moving with this.It is not the council’s asset, it belongs to the administrator and we don’t want to stall things even more.
"There are many good things happening in Peterborough at the moment. The city is really making progress.”
When will the sale review take place?
An extraordinary meeting of the Sustainable Future City Council Scrutiny Committee will now take place to hear the reasons for the call-in and debate the next steps.
This meeting will take place on October 20 at Sand Martin House in Peterborough.
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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