Search still ongoing for developer to complete Peterborough's Hilton Garden Inn

Action is still under way to secure the completion of Peterborough’s £30 million plus Hilton Garden Inn.

Officials at Peterborough City Council say they are still working closely with the administrator to find a new developer following the collapse in October of Fletton Quays Hotel, which had been responsible for the development.

Their comments come shortly after the administrator Teneo submitted a ‘statement of affairs’ of Fletton Quays Hotel to the High Court.

It states that, according to the developer, the assets available have a book value £5,433,397 but that it was likely only £579,917 would be realised.

The council provided a £14.7 million loan to Fletton Quays Hotel to ensure that construction of the 160-bedroom hotel at Fletton Quays could get under way.

A council spokesperson said: “All the figures quoted are not ours or the administrator's, they are the developer's estimates.

"The valuation by the developer is based on one professional view of the site as it currently stands where work to complete the hotel has ceased.

"The valuation by the council's quantity surveyor is based on it being an active site, working towards completion of the hotel.

"Our priority is to see the hotel completed as soon as possible so that the city can benefit from a fantastic new facility and the council's loan can be returned. We have no reason to believe this will not happen.

She added: “The council's loan remains secured against the asset (the hotel development) and professional valuations have been completed to confirm this at each stage when funds have been agreed.

"At this stage we consider that we have adequate security in the asset to cover the value of the loan.

"The council's main priority remains to protect its investment and ensure the Hilton Hotel is completed as soon as possible, and we continue to work closely with the administrators to achieve this."

The administrator has said that it does expect to get an independent valuation of the hotel over the next two months.