Fear millions may be lost on pigeon-infested hotel

The hotel on Fletton Quays is about 80% complete

A council could lose millions of pounds after agreeing to sell an unfinished pigeon-infested city-centre hotel, according to its former leader.

The Hilton, in Peterborough, is set to go on the market after developers, who took a £15m loan from the city council for the project, went into administration.

Conservative group leader Wayne Fitzgerald told the BBC it was the "wrong decision" by the council's cabinet on Thursday to ask administrators to sell the hotel.

But Labour's Mohammed Jamil said they were "clearing up the mess that people like Wayne Fitzgerald made" and the full amount might be recouped.

In 2017, the council - then under Conservative rule - borrowed £15m from the government to loan to developers for the project in Fletton Quays.

A rooftop bar and al fresco terrace overlooking the River Nene were included in the hotel design and were expected to be ready in 2019, but construction stalled in 2020.

The 160-bedroom hotel remains unfinished and unoccupied, with major works pending, including lifts and gyms.

Jamil, cabinet member for finance and corporate governance, told Thursday's cabinet meeting that the council would need "substantial additional borrowing" to finish the project.

At the meeting, members agreed to go ahead with the sale of the hotel and to ensure the process gets "best value".

Wayne Fitzgerald believed the council's cabinet made the wrong decision

Fitzgerald said it was the wrong decision and added: "The course of action was very clear all along - to develop out the building, see it through, get it operating and get the money back.

"[The] decision was a fire-sale, it was a cop-out and the council are looking on the thick end of, say £14m, they might lose by their actions."

Mohammed Jamil said there have been many inquiries about the building already

Jamil said: "We don't know exactly how much it will cost. It could be we get the full amount of the money back, it could be we get half the money back.

"It will only be once the market's been tested and we have a buyer and that money is in the bank.

"Up until that point, I can't speculate, I don't think anyone can speculate.

"All I know, I'm confident we will get money back because we've had so many inquiries to the council and the administrators."