Peterborough City Council to take control of partially built £30 million Hilton Garden Inn

Peterborough councillors have agreed to bid to take ownership of the partially-built £30 million Hilton Garden Inn.

Members of Peterborough City Council’s cabinet have voted to submit a £16.7 million credit bid to administrators for the freehold of the nine-storey hotel at Fletton Quays.

Councillors say the action is the only way to ensure the local authority does not lose money and achieves a high standard finish to the hotel.

The bid for the freehold of the Hilton Garden Inn will be considered by administrators Teneo.

The council, which provided a £15 million loan in 2017 for the hotel construction, took the developers Fletton Quays Hotel into administration last October after a period in which no construction work took place.

Councillor Amjad Iqbal, the deputy leader, told members that administrators had also received an £11.2 million offer for the hotel from Propiteer and a funder company but that would leave the council with a £5.7 million loss.

He added: “Propiteer has recently attempted to negotiate directly with the council to provide an improved offer of £12 million a share in the hotel’s future.

"But there is no scope to directly with the council as we don’t asset.

Cllr Iqbal added: “To ensure the hotel is completed in a timely manner and that the building is protected, it is recommended that the offer is rejected and that the council submits a bid up to £17 million to secure the hotel.”