Leading councillor says Peterborough's Hilton Garden Inn was sold for £2.5 million

Labour Councillor Mohammed Jamil, who is the cabinet member responsible for Peterborough City Council’s finances, told ITV that the nine-storey hotel at Fletton Quays had been sold for £2.5 million to £2.6 million.

However, when asked about the value of the sale, Cllr Jamil told the Peterborough Telegraph that he did not know the actual sale price.

He said: “It was a ballpark figure. I actually do not know exactly how much money the council will receive for the hotel.”

When the sale of the hotel to Peterborough- based Leisure & Co Hotel was announced on August 4, the council stated it would not comment on the price paid by the buyer for the 160-bedroom building and that all the financial details would be released by the administrator Teneo in November.

While the council does not own the Hilton Garden Inn, it is the primary creditor on the basis that it lent the developer £15 million in 2017 to get construction under and the sale was a way of getting back some of that money.

The council called in the administrators three years ago after a lengthy period in which no construction work had taken place.

Cllr Jamil said: “The hotel project is quite frankly a mess that was the making of previous administrations which we have been left to clear up.

"We know that people feel passionately about it because of the amount of money that was originally loaned by the council to the original developer and the costs spent since on the administration process.

“It has always been our ambition to resolve this in a way which limits the financial loss to the council and makes the best of this highly visible asset on our skyline.

“The announcement this week of the sale completion is the best possible option for the council and our residents as it sees the end of expenditure on this failed venture.

"The buyer has my full support in now completing the development and opening a hotel which will benefit the city for many years to come."

A council spokesperson said: "We are aware of the comment made by Councillor Jamil in relation to the sale price however it is not the council's information to release, it is for the administrators or the buyer to do so.

"We understand why residents are asking for this information, as it helps them to establish how much taxpayers money has been lost.

"However, the sale price alone will not give them this information.

"And that is because the sale of the hotel is only one indicator of how much money the council will see returned and therefore how much will need to be written-off.

The spokesperson added: “There is ongoing activity in relation to the wind-up of the company that the council took into administration which will determine this.

"In the fullness of time these figures will be made public, which we are required to do under accountancy regulations and because it is also the right thing for us to do as an organisation which has committed to transparency."

Hilton Garden Inn crisis timeline:

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

September 30, 2025: New report reveals Hilton Garden Inn suffers from pigeon infestation and water damage and was a huge cost to Council Tax payers.

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.

November 11, 2025: Hilton Garden Inn official goes up for sale. Agents warn buyers will need to spend £14 million to complete building.

January 16, 2026: Deadline for bids to buy the Hilton Garden Inn.

July 23, 2026: Expected completion of sale of Hilton Garden Inn

August 4, 2026: Hilton Garden Inn is sold to Peterborough- based Leisure & Co Hotel Ltd