Peterborough’s riverside skyline is marked by an unfinished silhouette—the stalled Fletton Quays Hotel, a project once billed as a jewel of the city’s regeneration, now emblematic of financial risk and dashed ambition. More than two years after the company behind the scheme went into administration, the city council remains exposed to £17 million, with little certainty that it will see a full return.
A project stalled
Fletton Quays Hotel Ltd entered administration in October 2023, after years of delays and mounting costs. Originally set to conclude within 12 months, the administration has already been extended twice, with the current deadline pushed to October 2026.
The hotel, intended as a flagship development for Peterborough, remains unfinished, leaving both the city and creditors in limbo.
Council on the hook
Peterborough City Council (PCC) is not just a bystander. It holds a first-ranking fixed charge over the hotel site and a floating charge over other company assets, making it the largest creditor with £17 million owed—interest continues to accrue.
Administrators warn that the eventual sale of the hotel is unlikely to cover this debt, let alone provide any return to second-ranking creditors, including Propiteer Capital PLC, which is owed £10 million.
The council has also funded the administration itself, advancing £1.174 million to cover urgent costs, including property security and administrator fees. Of this, £620,000 has already been spent on professional fees. Recovery of these funds depends entirely on the eventual sale of the hotel or other asset realisations.
Sale efforts falter
A restricted sale process once offered a glimmer of hope, with a third-party buyer poised to complete a deal in December 2024. But the buyer pulled out, forcing PCC to pivot to an open marketing process in September 2025. CBRE, a leading property agent, launched marketing in November 2025, with offers due by mid-January 2026.
Whether a buyer can be found and at a price sufficient to repay creditors remains uncertain.
Impact on creditors
The picture is grim for other creditors. To date, 27 unsecured claims totalling £4 million have been lodged, though the company’s accounts list 88 unsecured creditors owed £6.3 million.
Administrators predict only a small “Prescribed Part” distribution for unsecured creditors, while preferential creditors, including HM Revenue & Customs, are expected to be paid in full.
Mounting costs
Administration has been expensive. Time costs alone for the latest period total £192,000, bringing cumulative costs to £760,000, with senior directors billing up to £1,375 per hour. Most of these fees have been drawn from PCC funding.
A cautionary tale
For Peterborough, the Fletton Quays Hotel stands as a stark reminder of both ambition and risk. The city’s £17 million exposure, combined with lost economic activity and uncertainty for local suppliers, underscores the high stakes of stalled regeneration projects. As CBRE continues the open sale process, all eyes are on whether a buyer will emerge and what value, if any, can be salvaged for the city.
Until then, the unfinished hotel looms over the city’s skyline, a monument to both hope and hardship in Peterborough’s ongoing transformation.
All figures and facts are sourced from the official administrator’s progress report for Fletton Quays Hotel Ltd, November 12, 2025.
