Peterborough City Council leader vows to work with Hilton bosses to complete city's flagship hotel

The leader of Peterborough City Council has vowed to work with Hilton Hotel bosses to find a new developer to complete the construction of a 160-bedroom hotel on the banks of the River Nene.

The pledge from Councillor Wayne Fitzgerald comes after the council revealed it had appointed administrators for the developer of the £40 million Hilton Garden Inn at Fletton Quays after being told the company, Fletton Quays Hotel Ltd, would not be able to complete construction work.

It is understood the action came after the council became concerned at the apparent lack of building activity at the site and queried when construction, which has been funded by a £15 million loan from the local authority, would finish.

Now financial advisory company Teneo has been appointed as administrators to the developer.

Cllr Fitzgerald said: “We are working with Hilton to secure a new development partner. Discussions are going on and together we will ensure the hotel is completed. It will be a great asset to the city.

He said: “The £15 million is secured against the property, which even in its current state is worth more than that.

"It is unfortunate and the developer had been working hard on the project but came unstuck because of circumstances beyond its control, such as the Covid pandemic and the rising cost of materials and people.

Construction of the hotel, which is expected to be the city’s flagship venue, began in July 2020.

The first milestone for the nine storey building came in April 2022 when civic and business leaders attended a topping out ceremony held in what will be the hotel’s sky bar roof top terrace.

Guests at the event were told the hotel, which is expected to employ 75 staff, would be completed in January and should be open in the summer 2023.

Since then the opening date has been changed several times. The last time was a week again when the earliest reservations could be made was January 15 next year.

Despite the difficulties, the hotel still has the backing of Hilton Hotels, which would operate the venue.

A spokesperson for Hilton Hotels said: "Hilton Garden Inn Peterborough remains an important development for us and we look forward to welcoming guests to the hotel in future."

Cecilie Booth, executive director for corporate services and section 151 officer, said the council would take action to protect the building from the weather during the winter.

She said the decision to appoint administrators in relation to the developer of the new hotel at Fletton Quays had been ‘taken in line with the terms of a loan agreement between the council and the developer.’

She said: "We believe this course of action is necessary to ensure the hotel is completed and to safeguard the council's investment.

“The administrators will now take control of the building. They will also determine the optimal strategy for the sale of the building.

“The loan was originally provided to support the regeneration of Fletton Quays and our focus remains on seeing the hotel completed as soon as possible, providing a fantastic high-quality hotel and rooftop bar and at the same time protecting the council's investment."