Why has plan for resort's five-star hotel stalled?

The Sands Resort Hotel was due to open in 2021

Ten years ago, the first plans were mooted for a five-star hotel on Blackpool Promenade.

The Sands Resort Hotel was initially expected to open in 2021 with 91 bedrooms, a luxury spa and gym, conference rooms and valet parking.

However, a large portion of the distinctive black-clad property on the seafront close to Blackpool Tower remains empty.

So what has been the delay?

Legal wrangles

Investment in the development was reported to be about £30m, including a £10m loan from Blackpool Council's business loans fund, said the Local Democracy Reporting Service (LDRS).

However, progress has been held up for four years due to legal wrangles.

While the exterior of the building has been completed, the interior of the hotel has yet to be fitted out.

The LDRS understands that Blackpool Council's loan to developer Peter Swann through his company Coolsilk, made in 2018, is repayable over 25 years and is secured against the completed development.

Last year, when Blackpool Council leader Lynn Williams was quizzed about the issue at a council meeting, she said the loan was secured and the council was in touch with the developer's lawyers, with hopes of the legal issues soon being resolved.

She told the meeting: "The issue... is between the developer and his contractor and architect.

"We understand that is now coming to the end of that process and we will hear something shortly."

What about the rest of the site?

The site also includes the council's Showtown Museum which opened in March last year after also being delayed from June 2021, as well as the £600,000 Spyglass Bar on the groundfloor which opened in 2021, and the Wild West Diner which opened in 2017.

The site was originally occupied by the Palatine Hotel before it was demolished to make way for development which included the old Palace Nightclub, which Mr Swann converted to the Sands cabaret venue before closing that and embarking on the current development.

What is the latest on the hotel?

Asked about the latest developments this week, a Blackpool Council spokesperson said: "Whilst some aspects of the building have developed and moved forward, including the award winning Showtown – Blackpool's Museum of Fun and the restaurant and bar on the ground floor; the hotel has not seen any progress on site.

"We believe the developer, Coolsilk, is still in dispute with their contractors and have not yet reached a conclusion on this process," they said.

"We have no clear information on when an outcome will be reached."

What are the council doing about it?

Options to hasten progress are being looked at in earnest, the authority said.

The spokesperson added: "We are considering what options we have to hasten some progress on this development."