Unfinished Hilton Garden Inn is now a luxury roost for pigeons but a huge bill for Peterborough taxpayers
It was to have been a glamorous flagship venue for Peterborough but instead the partly-built Hilton Garden Inn has now become a luxury roost for pigeons and a drain on cash-strapped city council finances.
While construction of the nine storey hotel that sits on the banks of the River Nene at Fletton Quays came to a halt in May 2023, mother nature has continued to take her course with the unfinished building quickly falling victim to the weather, water and wildlife pests, particularly pigeons.
Indeed, figures from Peterborough City Council show that the costs of tackling ‘significant pigeon infestation’ along with water damage that has occurred over the last two years now amounts to £140,000.
It is just one cost among a growing number that councillors will have to factor in on Thursday (October 2) when they consider what next for the 160 bedroom hotel that has become a financial nightmare for council chiefs eight years after the local authority lent a developer £14.88 million to kickstart construction work.
As the primary secured creditor, it was the council's decision to take the developer Fletton Quays Hotel into administration when building work stopped.
Since then the council has struggled to find a solution to getting the hotel completed and has even considered taking on the project itself.
A hoped for sale last year fell through at the 11th hour when the would-be purchaser pulled out.
Now members of the ruling cabinet are being recommended by officers to agree that the unfinished building should now be marketed and sold by administrator, Teneo, to the highest bidder to ensure best value for the local authority..
They are expected to be told that breathtaking financial costs mean it is time to sell in an effort to recover as much of the £14.88 million as possible and then to move on.
Councillors will be told that interest of £1.2 million on the loan, which should have come to the local authority, has already been waived and that the cost to the council of the administration process already totals £1.8 million.
Acquiring the building and getting the building back into shape – which includes repairing a leak on the south-east corner of the building where an external lift shaft to the sky bar is in place, would cost a further £1.3 million.
Councillors will be told: “In light of the new information and the risk factors associated with this project it is recommended that Teneo proceed with the disposal process to its natural conclusion.
“To proceed with bringing this asset into the Council’s investment portfolio will create significant risk exposure as well as considerable further capital investment at a time when the Council’s finances have limited capacity to absorb fluctuations in returns.”
Councillor Shabina Qayyum, the council leader, has told the Peterborough Telegraph that the local authority must prioritise the needs of residents over a 'vanity project’ like the Hilton Garden Inn.
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