Peterborough City Council still considering best way to complete £30 million Hilton Garden Inn

Peterborough City Council has confirmed that it is in talks with ‘interested parties’ about the completion of the partly-built £30 million Hilton Garden Inn.

The local authority began what it described as a ’soft marketing exercise’ about six weeks ago to assess if there were any suitable companies interested in taking on the hotel at Fletton Quays.

Now it says a way forward could be outlined in weeks.

The council was forced to take action last year after the approved developer ran out of funds and construction work stopped.

The council, which had provided a £15 million loan for the development seven years ago, took the developer into administration last October.

As the preferred creditor, the local authority made a £16.7 million credit bid for the nine-storey hotel at Fletton Quays which was approved by administrators Teneo.

The aim of the soft marketing exercise was to discover if the council should finish the hotel by itself or if the nine-storey building should be sold on for completion.

A council spokesperson said: “The soft market testing is not yet completed and we are still talking to interested parties.

"But we hope to be able to recommend a way forward in an October Cabinet report.”

In July, councillors agreed a company should be set up to ensure the future of the unfinished hotel at Fletton Quays.

Councillors were told that transferring the hotel into a wholly owned company will be a ‘prudent’ action for legal and tax reasons.