Peterborough City Council plans to sell the partly built Hilton Garden Inn at Fletton Quays in a bid to reduce its soaring debt, which stands at around half a billion pounds.
The nine-storey, 160-bedroom hotel project—first proposed eight years ago—is set to go on the open market as the council seeks to achieve the best possible return. Finance officials have confirmed that all proceeds from the sale will be used to pay down existing debt, freeing up interest payments to fund local services.
The council originally lent £15 million to the hotel developer in 2017 to get the project underway. Construction finally began in 2022 but was halted the following year due to the impact of the Covid pandemic and rising building costs.
The sale forms part of the authority’s wider effort to stabilise its finances following years of heavy borrowing and stalled developments.
The announcement comes as the council faces growing public concern over the potential sale of other local assets, including community and faith buildings, as it seeks to balance the books.