Peterborough Council Plans Sale of Unfinished Hilton Hotel with Potential Financial Loss

Peterborough City Council has decided to sell the unfinished Hilton Garden Inn hotel at Fletton Quays after its developer went into administration, with the council having loaned around £15 million to the project since 2017. The hotel, designed to include a rooftop bar and terrace overlooking the River Nene, remains incomplete and unoccupied with significant works still pending, including lifts and gyms. Labour cabinet member Mohammed Jamil emphasized that selling the property aims to recoup as much of the loan as possible, acknowledging the possibility of substantial financial loss but expressing hope for a sale within 12 months. Conservative leader Wayne Fitzgerald criticized the decision as a "grave mistake" and a "fire sale," arguing that the council should have found a development partner earlier to share risks and complete the hotel. Despite the uncertainty over the sale price and future use of the building, Hilton remains supportive of continuing the hotel project. The council faces the challenge of balancing financial recovery with the risk of losing money after prolonged delays and construction stalls exacerbated by the pandemic and rising material costs.