The fiasco around the Hilton Garden Inn project at Fletton Quays in Peterborough is set to reach a new milestone with a council recommendation to sell it.

Peterborough City Council’s cabinet will be asked to instruct administrator to put the half-built site on the market at its October 2 meeting.

Work on the hotel, a key element of the £160 million regeneration of a derelict riverside area, stopped due to the disruption caused by lockdown and rising costs. That eventually forced developer Fletton Quays Hotel Ltd into administration.

The council, as primary creditor having loaned the developer £15m, is now set to instruct administrator Teneo to sell and obtain best value. An attempted sale to a third party fell through earlier this year.

Cllr Mohammed Jamil, cabinet member for finance and corporate governance, said: “The Hilton Hotel project is one of a number of complex issues that were the making of previous administrations which we have been working hard to seek to address.

“We know that this is a project that people feel passionately about because of the amount of money that was originally loaned by the council to this company, however, what is important now is that we look to the future.

“When interest from a potential buyer fell through at the start of the year, we asked for a thorough investigation to be carried out to determine next steps, evaluating all the options available.

“What became clear is that we would need to approve significant additional borrowing and accept a high level of risk if we opted to build and operate the hotel. It is also clear that the council does not having the skills and expertise in house to manage the operation of such a specialised asset.

“There is significant interest in the site, which is reflected in the extensive number of approaches that have and continue to be made directly to the council, so we hope Teneo move forward as quickly as possible.

“It remains our priority to achieve the best possible outcome for residents.”

Image: Google.

© Eastern Echo (powered by ukpropertyforums.com).

Sign up to receive our weekly free journal, The Forum here.