Peterborough City Council claims it has other options for the Hilton hotel

In the UK, Peterborough City Council (PCC) expressed disappointment after a buyer for the unfinished Hilton Garden Inn hotel withdrew just weeks before the expected contract exchange. The PCC had intended to sell the hotel, initially predicted to open in 2019, but various construction delays have pushed the project timeline drastically back. According to PCC's executive director of corporate services, Cecilie Booth, the council is now in discussions with two additional parties aiming to finalize the sale at the end of January 2025. The Hilton Garden Inn, located at Fletton Quays, has remained 80% complete, with some rooms fully fitted out. However, no construction activities have occurred for the past two years, leaving significant work such as elevators and a gym yet to be undertaken. In light of the buyer's withdrawal, the council has also considered the option of completing the hotel project themselves, which would entail approximately an additional year of construction. The ongoing uncertainty surrounding this hotel venture raises questions about the financial arrangements previously made by the council. In 2017, the council lent £15 million to a developer for the hotel under the Hilton brand as part of a broader redevelopment plan for Fletton Quays. However, this loan now carries an outstanding balance of £17 million, including accumulated interest, which the council anticipates only being able to recover once the hotel becomes operational with paying guests. If the council chooses to pursue ownership and operation of the hotel, they plan to run it for two to five years before reselling to recuperate their investment. The decision of the unnamed buyer to walk away from the deal remains unclear, and there are no indications provided by the council on why this occurred. The broader implications of this situation reflect not only the challenges facing local councils in managing ambitious redevelopment projects but also the impact of stalled investments on urban revitalization efforts. Peterborough City Council remains hopeful as they explore alternative options that may lead to the successful completion of the Hilton hotel project.