Administrators are seeking a buyer for the partially completed Hilton Garden Inn at Peterborough’s Fletton Quays, with the city council’s £17 million investment hanging in the balance.
A new report shows the high costs of managing the administration. During the latest period, 213 hours of work cost £192,000, bringing total administration costs to around £760,000 since October 2023—further reducing funds available to creditors.
Council loan under threat
Peterborough City Council (PCC) provided a first-ranking loan to the developer. Administrators warn it is unlikely the eventual sale will fully repay the council, as interest continues to accrue on the outstanding £17 million.
Sale process relaunched
Following a failed sale in December 2024, administrators and PCC relaunched marketing through global real estate advisor CBRE. Offers for the freehold are due by 16 January 2026. The hotel, part of the £120 million Fletton Quays regeneration, is designed to include 160 bedrooms, a restaurant and bar, meeting rooms, a gym, and a rooftop bar.
CBRE director Peter Barrasford said the firm expects strong interest from investors who can complete the landmark scheme, adding: “We aim to bring this important project to a rightful and successful conclusion.”
Creditors face disappointment
Unsecured creditors are likely to miss out, with claims of around £4 million unlikely to be repaid. Only HM Revenue & Customs, with a preferential claim of roughly £13,000, is expected to be paid in full. Administrators have postponed formally agreeing creditor claims until the sale outcome is clearer.
Next steps
The administration has been extended to October 2026. Key tasks include completing the hotel sale, repaying PCC, settling fees, distributing funds to secured and preferential creditors, finalising VAT and tax matters, and winding up the company.
Project background
Approved in 2017, the Fletton Quays Hilton Hotel stalled due to Covid, Brexit, and industry delays. Work slowed in May 2023 and stopped entirely before the developer went into administration in October 2023. A council credit bid was not completed, leaving the site in administrators’ hands.
With the sale process now underway, the future of Peterborough’s long-delayed hotel—and the council’s £17 million investment—remains uncertain.
