Myth – the council owns the hotel.
Truth – The council does not own the hotel and it never has done. It remains in the hands of the administrators, Teneo, who took control of the asset in the autumn of 2023 when the company undertaking the development was put into administration by the council. The council did gain permission to submit a credit bid to take ownership of the hotel in October 2024, but this was never completed as the detailed business case required further exploration.
Myth – the council could have used the money it loaned to the developer to provide services such as care for the elderly.
Truth – the money loaned to the developer of the hotel was a capital loan and was money borrowed for a specific purpose and was due to be repaid. If it had been repaid there would have not been an impact on the council’s finances.
Unfortunately, as it will not be recovered in full the amount that is written off will be a charge against the council’s revenue account over a number of years.
The government has recently brought in new capital rules which has significantly changed the financial risks and costs for councils of undertaking capital loans which would make it very financially onerous to do so in the future.
Myth – Peterborough has enough hotels already and there is no reason to visit the city.
Truth – There is a notable undersupply of hotel accommodation within the city, particularly in the mid to upper mid-scale segment. This supports the assertion that there is a need for higher quality accommodation. The city’s new Tourist Board and strategy to enhance and improve Peterborough’s reputation as a place to visit and spend time demonstrates a commitment to shouting more loudly about what the city has to offer. A quick visit to Discover Peterborough shows that there is a huge amount for people to see, visit and experience in our city.
Myth – the hotel shouldn’t have the Hilton name on it as it won’t be a Hilton.
Truth – This was a matter for the previous company and the administrator not the council. Hilton has reconfirmed its commitment to having a hotel in the city on a number of occasions, so there is every chance that it will end up being a Hilton hotel if the right buyer comes forward. Hilton does not build and operate its hotels. It gives permission for developers and hotel operators to build and run facilities using the Hilton brand, on the assumption the hotel meets a clear set of standards.