Skip to main content
Menu

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.

In the meantime, we undertook soft market testing to understand if there was any interest from those who may look to purchase the hotel. There were a number of expressions of interest. It was recommended that we accepted a subsequent firm offer from one of the interested parties.

Due diligence took place to confirm the final terms, with the intention that the hotel would transfer directly from administrators into the ownership of the preferred bidder.

At a Cabinet meeting on Tuesday 15 October 2024, Cabinet Members approved the transfer of the hotel from the administrators to the preferred bidder.

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:

Published: 23 October 2024