£15m loan for Peterborough's new Hilton hotel extended again amid building delays
The loan was due to expire at the end of the month but will now expire at the end of the year
Peterborough City Council (PCC) has agreed to extend a £15m loan for the construction of the city’s new Hilton Garden Inn hotel.
The loan to developers Propiteer Hotels Ltd was due to expire at the end of the month, but will now expire at the end of the year.
Building the 160-bedroom hotel in Fletton Quays has been beset by delays since construction began in July 2020.
A PCC report says that “supply chain problems which have impacted on supply of labour and materials” is to blame, as well as "the liquidation of the hotel’s main contractor”.
The report adds that council surveyors are satisfied that the site is well managed and that “progress is good despite the delays”.
Speaking at a PCC meeting this week, leader Cllr Wayne Fitzgerald (Conservatives) said that the council is making a commercial return on the loan and that the cash will support council services.
“Our money is safe,” he said, adding that it’s “good to see the Hilton brand investing in our city”.
Cllr Andy Coles (Conservatives) agreed that it’ll be a “fantastic asset for Peterborough”, while stressing that the loan is fully secured against it.
PCC’s report says that “interest will continue to be chargeable by the Council at a commercial rate of interest until the loan is refinanced”.
It proposes that the hotel be able to start trading before refinancing the loan.
The loan was first approved in 2017 and has been extended before.
Initially for two years, it was extended until 31 March this year.
Construction is due to continue this summer and developers hope it will open in autumn.
As well as a hotel, the facility will include a rooftop bar and large conference space.