Cabinet members will be asked to approve the transfer of the Hilton Hotel at Fletton Quays from the administrators to a bidder who has come forward to take ownership of the hotel.
At a Cabinet meeting on 30 May, members gave their go-ahead for the council to submit a credit bid for the hotel, which it did on 7 June. This bid, made using the council’s outstanding debt, was subsequently accepted by the administrators.
In the meantime, the council has been carrying out soft market testing to understand if there is any interest from those who may look to purchase the hotel.
There were a number of expressions of interest, and it is now recommended that a subsequent firm offer from one of the interested parties is accepted.
Due diligence is taking place to confirm the final terms, with the intention that the hotel will transfer directly from the administrators into the ownership of the preferred bidder.
At the meeting taking place on Tuesday 15 October, Cabinet members will be asked to approve the transfer of the hotel from the administrators to the preferred bidder.
Councillor Mohammed Jamil, Cabinet Member for Corporate Governance and Finance, said: “The council has been very honest from the point the administrators were appointed that it would act in the best interests of taxpayers. This is why we have been exploring in tandem both the option to acquire the hotel ourselves, or to sell it to a third party who can see it through to completion.
“Selling to a third party will not only allow the hotel to be completed as soon as possible, but also means that we will not have to incur the additional costs to complete the hotel. This is really important at a time when we are facing huge financial pressures including an £11m in-year overspend and a budget gap which could be as high as £24m next year.
“It remains our overriding priority to protect the investment made by the council so far and to see the hotel open as quickly as possible.”
The cabinet meeting will take place on Tuesday 15 October at 4pm at the Town Hall, Bridge Street, Peterborough. People can attend in person or watch the meeting on the council’s YouTube channel.