Deal could see unfinished hotel open in 2025

The Hilton Garden Inn Hotel in Fletton Quays is around 80% finished

A partially finished hotel is to be sold to a third party buyer.

It means the Garden Inn Hotel in Peterborough could finally open after sitting empty for a year. The buyer has not yet been named.

Work on the nine-storey hotel stopped after its developers went into administration.

Since then, Peterborough City Council has sought a buyer to complete and open the 160-room hotel.

Deputy council leader Mohammed Jamil said the council is set to get a "good return" on the sale.

Finance chief Cecile Booth said the buyers wanted to complete the sale within the next four to six weeks, with a view to completing the hotel within 12 months.

"Maybe by Christmas 2025 we can have a big party in the sky bar in the hotel," she said.

Why is the council involved?

Peterborough City Council’s involvement with the hotel began in 2017.

Its then Conservative administration agreed to provide a loan of up to £15m for its development.

The council said this was part of wider regeneration of the Fletton Quays area, which also includes its headquarters Sand Martin House.

The loan is now worth closer to £17m due to accumulated interest.

Construction of the hotel was delayed by Covid lockdowns.

The council said a "slowdown in the construction industry" which impacted the build could also be attributed to Brexit.

It extended its loan several times while building work took place between 2020 and 2023.

The hotel also began accepting bookings, but had to cancel these.

Then, in October last year, its developers were taken into administration and work on the project completely stopped, having slowed for several months.

The council then prepared a credit bid for the freehold of the hotel to protect its investment.

It also earmarked extra money to ensure the hotel’s completion.

At the same time, it carried out a marketing exercise which brought forward "several interested parties".

Taking control of the hotel remained the council’s backup plan in case it was not able to agree a sale with a third party buyer.

It could still happen if the sale is not successfully completed.

The hotel on East Station Road should have a rooftop bar and al fresco terrace on completion, according to original plans.