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Hilton Hotel development at Fletton Quays

Project background

In September 2017, we agreed to provide capital funding (borrowed money) for the construction of the 160 room Fletton Quays Hilton Hotel. This was by way of a loan of up to £15m to the developer of the hotel.

The hotel site is part of our flagship regeneration project in Fletton Quays, which comprises of:

  • Our headquarters Sand Martin House
  • 229 apartments
  • A multi-storey car park
  • Government Hub / Passport Office

Further development on this site includes:

  • The new Cygnet Bridge
  • Additional apartments
  • A food and beverage operator in the Goods Shed

This is a key project for us, and a high-end hotel is a key feature of the overall regeneration of the Fletton Quays development site.

Current status

The hotel development was significantly delayed due to a slowdown in the construction industry during and following Covid and Brexit. Work on-site slowed in May 2023 and then stopped and the developer was put into administration on 17 October 2023.

To protect our financial position, and to ensure construction of the hotel is completed as quickly as possible, Cabinet Members agreed to submit a credit bid for the hotel up to the value of our loan at a meeting on 30 May 2024. This bid, made using our outstanding debt, was subsequently accepted by the administrators. No new money was paid by us to take ownership of the hotel.

Cabinet Members will now be asked to delegate authority to Cecilie Booth, our Executive Director for Corporate Services and Section 151 Officer, to complete the acquisition. This includes the establishment of a new company.

We have received advice that a company would be in our best interests for legal and tax reasons. Other councils have also taken this approach.

The Cabinet report also sets out that the full costs to complete the hotel are being finalised. At the same time, we are undertaking a soft market testing exercise to assess interest from those who may look to purchase the hotel. A procurement exercise is also underway to secure a developer / operator relating to the self-delivery option, if this option was chosen.

A business case is being prepared to enable a decision on whether to complete the hotel through a self-delivery model or to sell to a third party to complete.

It remains our overriding priority to protect the investment made so far and to see the hotel open as quickly as possible.

The Cabinet meeting will take place on Tuesday 16 July 2024 at 4pm at Peterborough Town Hall on Bridge Street. People can attend in person or watch the meeting on our YouTube channel

Hilton has publicly confirmed its commitment to the hotel and to Peterborough.

You can read more about the latest on this project in the following Cabinet agenda papers from previous meetings: