A half-built hotel in Peterborough has become a financial nightmare for the local council after it poured £15 million into the venture. The intended 160-bedroom Hilton Garden Inn in Peterborough is now a derelict shell on the banks of the River Nene, with no progress made in over two years. Local taxpayers are up in arms as the deserted site has become a haven for “hundreds of pigeons”.
Described by residents as an “embarrassing eyesore and an insult to the taxpayers of Peterborough”, the nine-storey building is far from the luxury accommodation it was meant to be. The hotel, which was due to open its doors in July 2019, saw construction commence after the council’s loan agreement, but hit severe snags amidst the COVID-19 pandemic. The developers going into administration then brought construction to a standstill.
Despite never having operated, the hotel has garnered a number of joke five-star reviews on Google.
The hotel, praised for its “very welcoming staff and really nice food”, has yet to host a single guest since the property remains unfinished.
The Conservative-led council that approved the loan in 2017 has since given way to a Labour minority administration.
A Peterborough resident told The Telegraph: “The building is still not finished and is degrading rapidly inside as it is not watertight. The only residents are hundreds of pigeons. It’s a total disaster.”
Another took to social media to condemn the project as an “embarrassing eyesore and an insult to the taxpayers of Peterborough”.
EY, an accountancy firm, recently audited the council’s finances, flagging a “significant risk” that the hotel’s value is less than the £15 million invested. The audit report suggests that an “expected credit loss” is under consideration.
It was also revealed that the council funded the loan to the developers using money from a government public works loan board.
The unitary authority of Peterborough City Council is currently wrestling with a £500 million in debt, with its projected budget deficit for the 2025 to 2026 financial year standing at £23 million.
In an effort to curb spending, the council is making cuts to services including reducing opening hours at the city museum and slashing the highways maintenance budget by 15%.
City council leader Dennis Jones said: “The hotel is currently under the control of the administrators. A report is due to go to cabinet in the near future setting out the options available and proposed next steps to protect the council’s interests and the public purse.”
