Hotel development in seaside resort further delayed

The 91-bedroom hotel was initially expected to open in 2021

A stalled hotel development on a seafront, which was given a £10m council loan, has been further delayed due to a "legal dispute", the local authority has said

Councillors raised concerns about the "big, black, empty building" in Blackpool, which is due to become the Sands Hotel on Central Promenade.

The opening of the hotel has been held up for more than two years.

Blackpool Council leader, Lynn Williams, said the delay was due to a dispute between the owner and contractors.

'Frustrating'

The developer has been contacted for a response.

The 91-bedroom hotel was initially expected to open in 2021.

The venue will also include the council’s Showtown Museum which is scheduled to open on 15 March.

Councillor Paul Galley, leader of the Conservative group on the council, raised concerns at a meeting of the full council about the “big, black, empty building” due to become the Sands Hotel.

He said: “The council made a loan of £10m. When will it open and are interest payments being made on that building?”

Ms Williams said the council’s loan was secured but she could not give out any further information due to legal proceedings.

She told the meeting: “There is a legal dispute between the owner and his contractors. We are not involved in that so I can’t comment further.

"It is frustrating."

She said negotiations were ongoing, adding: "We have taken all steps necessary to secure that investment".

Following the meeting, Councillor Galley said he would "continue to ask questions about this deal".

He added: "All I do know at this stage is the loan is "secured against the completed development" and we have a hotel that is definitely not completed sat empty in one of our prime areas of the Promenade.”

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