April 21, 2024
Money

Hilton hotel set to be owned by council to recoup money


  • By Shivani Chaudhari & Joanna Taylor
  • BBC News, Peterborough and Local Democracy Reporting Service

Image caption,

The hotel was intended to be a “game-changer” in the development of the area between the River Nene and Peterborough United’s stadium

A cash-strapped council is preparing to buy an unfinished hotel in order to recoup the money it has already put into it.

In 2017, Peterborough City Council loaned Propiteer Hotels £15m to build the Hilton Garden Inn on the River Nene’s South Bank.

Work stalled in 2020 and the council brought in administrators to look at the hotel’s developers in 2023.

The council is due to vote on plans to bid for the freehold.

A council spokesperson said no “new money” would need to be spent on buying the hotel, on East Station Road.

The council said its bid would be up to the same value it is owed for the loan it provided seven years ago, whose size had now reached £17m due to interest.

The council took the latest developers Fletton Quays Hotels into administration in October after repeated delays to the hotel’s completion. 

‘Huge risk’

Companies involved in the hotel project were asked if they could help identify a way to open the hotel. This will come to an end on Monday.

Deputy leader of the council John Howard, from the Peterborough First group, said the decision to bid for the hotel’s freehold was partly about money, but also partly about protecting the regeneration of the Embankment. 

“We would be taking control of the building and the land, effectively,” he said.

Council leader Mohammed Farooq added the move would protect the council’s investment, which was otherwise at “huge risk”. 

“Having a Hilton hotel in the city would be a huge asset and therefore I am pleased that Hilton remains committed to the development and to Peterborough,” he said in a statement. 

Several other companies invested in the £40m project, but when the council loaned money to developers, the local authority was at the top of the list for repayment.

However, repayment has not been guaranteed and the council could stand to lose its investment if it walked away from the empty nine-storey building.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first.
Complete the form below to subscribe to our weekly newsletter.


100% secure your website.