Winding up petition issued against hotel developer

A winding up petition has been issued against a property company with a number of interests in the South West.

Propiteer Hotels specialises in hotel and housing developments and owns one hotel in Exeter and wants to develop another in Plymouth.

The developer is also currently involved in a stalled scheme in Peterborough which involves the local council.

Peterborough City Council has loaned Propiteer Hotels £15m to build a Hilton.

Work began in 2020 but encountered problems and delays and the council called in administrators in last year.

As a result a company under the Propiteer umbrella went into administration, leaving Peterborough’s £26m Hilton Garden Hotel unfinished.

The council’s leader Mohammed Farooq said it had “no choice” but to continue in order to recover the money.

Propiteer also operates The Hampton by Hilton at Exeter airport after buying it for £11.6m.

According to Propiteer’s website the hotel was propping up a failing trust fund that was being weighed down by over-inflated management charges and co-existing negative assets.

The company is also involved in plans for a new 150 room hotel in Plymouth Hoe.

Last week Propiteer Capital  said it is still committed to building a Hilton Garden Inn on the site of the former Quality Hotel, which has been empty for nearly eight years.

Dave Marshall, founder of Propiteer Capital Plc, said the project was complicated but stressed plans were still moving forward.

He told PlymouthLive: “It is an extremely complicated and high-profile scheme so it is essential it is given full consideration to ensure it brings Plymouth the maximum benefit for the city. We are consequently working closely with Plymouth City Council on this application to ensure it meets the high standards expected. We would expect to have a scheme that fulfils these standards submitted around early summer.”

Propiteer said the winding up order is in relation to a particular scheme.