Sale of Peterborough's partly-built Hilton Garden Inn completed with hotel to open next year

The nine storey building on the banks of the River Nene, at Fletton Quays, has been sold to Peterborough- based Leisure & Co Hotel Ltd which says it will open as the Hilton Garden Inn Peterborough in Summer 2027.

The amount paid for the hotel has not yet been revealed but is likely to be substantially less than the £15 million lent to the developers by Peterborough City Council in 2017.

The 160 bedroom hotel will be managed by Leaf Hospitality and will offer a restaurant and bar, meeting facilities, fitness amenities and a ninth-floor rooftop terrace with views across the River Nene and Peterborough Cathedral.

The hotel is also expected to create around 60 local job opportunities, supporting Peterborough’s visitor economy and adding to the wider impact of the Fletton Quays regeneration scheme.

Councillor Mohammed Jamil, the council’s Cabinet Member for Finance and Corporate Governance, has welcomed the news. said: “This is such positive news for the city, and I wish the buyers the very best with their new venture.

“The sale of this asset is an important step towards resolving a long-standing issue and bringing this prominent riverside site back into productive use.

“This was an issue we inherited from the previous Conservative administration and my priority has always been to secure the best possible outcome for the city and our residents.

"We considered a number of different options with the administrators and selling the asset best protected the interests of taxpayers and supported the continued regeneration of this important area of the city.

“We now look forward to seeing the new owner bring forward their plans, complete the development and help realise the original ambition for a high-quality hotel that supports jobs, visitors and local growth.”

Paul Barrasford, Director, UK Regional Hotels, CBRE, which has provided the council with market advice to support the disposal and marketing of the site, said: “This hotel is a landmark development and will have a significant positive impact on the local community and the wider city of Peterborough.

"It will boost local business, drive tourism and support the council’s £120 million Fletton Quays regeneration scheme.

“Once complete, the hotel will bring jobs, commerce and investment to the area, as well as providing a high-quality hospitality and leisure venue for the community to enjoy. Having the opportunity to help orchestrate this deal, CBRE has played a vital role in delivering the original vision for Fletton Quays.”

Administrators, Teneo, has been in charge of the asset since the council took the company previously leading on the development, Fletton Quays Hotel Ltd, into administration in October 2024.

The council agreed to provide funding for the construction of the Fletton Quays Hilton Hotel in 2017, this was by way of a loan facility of up to £15m to the development company for the hotel.

Teneo marketed the site earlier this year and committed to ensuring that any sale of the site achieves best value, following Cabinet approval in September 2025.

A council spokesperson said: “We cannot comment on the sale price as this is for the administrators or the buyer to release.

“The council has already made an initial estimate of its credit loss as required by accounting rules and this was included in the accounts for 2024/25."

A spokesperson for Leisure & Co Hotel Ltd said: “This represents a significant investment in Fletton Quays, and we look forward to welcoming guests to the hotel next year.

"We would like to thank Hilton for the continued support and our advisors, Burgh Thorpe Solicitors, for their guidance throughout the process.”

Paul Blackmore, vice president, development, UK & Ireland, Hilton, said: “We’re excited to see Hilton Garden Inn Peterborough moving forward and to reaffirm our commitment to this important project.

"Fletton Quays is an important regeneration scheme for the city, and this hotel has the potential to play a key role in bringing new visitors, jobs and energy to a prominent riverside location.

"We’ve long believed in the opportunity here and are pleased to see the project take this important step closer to delivery.”

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