Sale of Peterborough's partly-built £15 million Hilton Garden Inn seems poised for completion
The much-anticipated sale of Peterborough’s partly-built and pigeon-infested Hilton Garden Inn looks to be on course for completion in days.
A buyer for the nine-storey building at Fletton Quays is known to be in talks with administrators Teneo and legal work to complete the sale has been in process for several weeks.
It is understood the buyer is a locally-based developer.
Teneo revealed in its regular administration progress report in May that completion of the sale was expected by July 23 and there has not been any announced change to that date.
Completion of the sale is also expected to reveal the size of the loss to Peterborough City Council, which provided a £15 million loan in 2017 to the developer to kick-start construction.
Teneo has already stated that the council is unlikely to recover all of its loan, the value of which, with interest, is estimated to be worth £18 million.
It is also thought the sale price for the building might only amount to between £2 million to £3 million.
Property agents CPRE, which oversaw the sale, had estimated the cost of finishing the hotel could be £14 million although it has been suggested that figure could be as low as £7 million.
The administrators were brought in by the council in October 2023 after a prolonged period in which no construction work was carried out by the then developer, Fletton Quays Hotel.
A survey of the property by the council last year revealed that the unfinished Hilton Garden Inn was suffering from pigeon infestation and water damage and was a huge cost to Council Tax payers.
The cost of selling the Hilton Garden Inn
Construction of the hotel was funded by a £15 million loan from Peterborough City Council nine years ago and makes the local authority the primary secured creditor
Although interest means the value of the loan has risen to about £18 million, officials are not expecting that the sale of the building will allow the local authority to get much of its money back.
It is estimated the council will recover £2 million to £3 million with the cost of the administration process itself totaling about £1 million.
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