Councillors are to consider taking ownership of the troubled Hilton Hotel development in Peterborough.
An extraordinary meeting of the city council’s cabinet on May 30 will discuss the authority taking over the unfinished scheme at Fletton Quays, almost seven years after agreeing to invest £15 million in the project.
Since then, developer Norlin Hotels Holdings Ltd was absorbed into Propiteer Hotels Ltd which was sidelined after its Fletton Quays Hotel Ltd subsidiary entered administration.
On top of costs and delays caused by lockdown and the main contractor going out of business, the saga has reached a point where the council is now faced with the option of pulling out and writing off its investment or attempting to see the project through.
Councillor Dennis Jones, leader of Peterborough City Council, said: “This situation is one which we wish could have been avoided and it is most likely the hotel would now be open if it had not been for the Covid pandemic.
“Owning the hotel will allow us to see the development through to completion and benefit from the return of our loan and a fantastic new hotel facility for Peterborough. The alternative is that we walk away and lose most of, if not all of our investment.
“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. We are working closely with Hilton and other partners as we plan the next stages.”
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