Sale starts of Hilton Garden Inn but buyers told they will need to spend £14 million to finish the building
A buyer for Peterborough’s unfinished Hilton Garden Inn will have to spend more than £14.3 million to complete the building as a hotel, it has been revealed.
The figure is contained in the just-released sales particulars for the nine storey building at Fletton Quays which officially went on the market yesterday (November 11.
The sale process for the freehold of the property that sits on a 3,500 square metre site has been set in motion by Peterborough City Council.
It comes after councillors agreed last month that it was time for the local authority to cut its losses and sell the building, which started life eight years ago when the council lent the developer £15 million to get construction started.
Council leaders have warned the local authority might not recover all the money that it lent and the cost of finishing the hotel might impact the size of any offers to buy the building.
The building is being marketed by respected commercial agents CBRE as a Hilton Garden Inn but prospective buyers are being told that offers are invited on an ‘unconditional basis for both existing and alternative use.’
In the 12 page sales brochure, CBRE states: “A cost to complete report produced by Quartz in February 2024 estimates that approximately £14.361 million is required to finalise the outstanding works.
"The last phase of works took place in March 2023.
It adds: “The preference is for the hotel to be completed and operated as a Hilton Garden Inn (under Franchise Agreement), though other hotel branding proposals will be considered.”
The brochure also states that when completed, the Hilton Garden Inn will offer ‘extensive facilities including 160 bedrooms, restaurant, bar, meeting rooms, gym, and rooftop bar with external riverside dining.
It goes on: “The hotel is strategically situated centrally within the new Fletton Quays mixed-use development scheme.
"This ideally positions it to capitalise on a broad range of resident and non-resident demand drivers.”
"The completed hotel will feature 160 modern, air-conditioned guest bedrooms, many with fabulous views over the River Nene and Peterborough city.
"The Seller’s intention was to deliver a development in line with Hilton Garden Inn brand standards; however, the buyer is welcome to explore alternative branding options.
It states: "The completed hotel will benefit from a range of food and beverage facilities, allowing it to cater for large numbers of both resident and non-resident clientele through its breakfast room, waterfront bistro and bar on the ground floor.
"The Sky Bar will offer a unique waterfront outdoor dining experience with views over the city from the rooftop terrace.
“The restaurant will offer an envisaged 100 to 120 covers, in addition to a bar, outdoor terrace and lounge.
"On the rooftop, it’s estimated the Sky Bar will have capacity for around 200 persons.”
The brochure concludes with details of the bidding process.
It states: “All bids must be submitted no later than 5pm on Friday 16th of January 2026.
"Viewing Arrangements. Bona fide parties will be invited to attend one of several scheduled block viewing sessions, with dates to be announced.”
The hotel building is not owned by the council, which took the developer Fletton Quays Hotel into administration in October 2023 after a prolonged period in which no construction work took place. But the £15 million loan made the council the primary secured creditor for the building and the local authority has instructed administrator Teneo to sell the property.
State of Peterborough’s hotels sector:
The sales brochure highlights the need for a top quality hotel in the city, which is currently home to 37 hotels of various types.
It states the 37 hotels provide a total of 1,832 bedrooms but 86 per cent of these premises have less than 100 bedrooms and 74 per cent of the hotels are independently branded.
Hilton timeline:
This timeline highlights the route to the tough decision now facing the council’s new Labour-run administration.
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.
13 March, 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
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.