Developer of Hilton Garden Inn Hotel is taken into administration by Peterborough City Council

The developer of the Hilton Garden Inn has been taken into administration by Peterborough City Council.

The £40 million hotel on the banks of the River Nene at Fletton Quays, has been under construction for several years with the opening being repeatedly pushed back as the Covid pandemic and then the war in Ukraine created extensive delays securing workers and materials.

The council had provided a £15 million loan – finances that could not be used for public services – to the developer with the loan plus interest to be paid back on completion of the hotel.

Teneo has been appointed as the administrator.

Cecilie Booth, the council’s executive director for corporate services and section 151 officer, said: “The council has today (October 17) appointed administrators in relation to the developer of the new hotel at Fletton Quays.

“This action has been taken in line with the terms of a loan agreement between the council and the developer.

"We believe this course of action is necessary to ensure the hotel is completed and to safeguard the council's investment.

“The administrators will now take control of the building.

"They will also determine the optimal strategy for the sale of the building.

“The loan was originally provided to support the regeneration of Fletton Quays and our focus remains on seeing the hotel completed as soon as possible, providing a fantastic high-quality hotel and rooftop bar and at the same time protecting the council's investment."

A Hilton spokesperson said: "Hilton Garden Inn Peterborough remains an important development for us and we look forward to welcoming guests to the hotel in future."