An update has been issued over the saga surrounding the transformation of a landmark Preston building.

The vision to turn the former Post Office building in Birley Street into a swanky £15m hotel and wedding venue named after one of PNE’s greatest players has been ongoing since 2016, when Preston Council sold the Grade-II listed site to Liverpool-based Signature Living.

But things came to a holt in 2022 when the company hit financial problems and Manchester-based Kroll Advisory began the administration process.

Fears Preston’s famous Park Hotel could burn down before regeneration

The Shankly Hotel Preston has been on the horizon for eight years - but there is still no news of an opening date and now it is not even clear how many bedrooms there will be

placeholder image — The Shankly Hotel Preston has been on the horizon for eight years - but there is still no news of an opening date and now it is not even clear how many bedrooms there will be

What’s happening?

Now Kroll has issued an Administrator's Progress Report to Companies House, which explains some of the delays and what is happening.

The report states that the secured creditors are continuing to fund the development of the hotel, with the aim of completing the work on the property, with plans for the money to be redeemed via a fixed charge upon the sale of the property.

It says that “discussions are ongoing with interested parties”, but there are “a number of outstanding matters in relation to building control sign off and the fire strategy which continue to hinder progress with the development.”

It adds: “The Company has submitted a planning application that addresses the various issues around building control and fire strategy, which in turn should make the Property more attractive to interested parties, if planning approval is obtained.”

It also stated: “There was a delay in appointing a selling agent, due to the ongoing issues with building control and the fire strategy, in addition to delays obtaining information and documentation for the building works that had been completed to date.”

The hotel is to be named after Bill Shankly, famous manager of Liverpool FC, who spent much of his playing career at Preston North End.

Costs

There has also been an update on the costs incurred since the administration process began. During the 12 month Reporting Period to September, the construction costs totalled £31,935 and during the Cumulative Period the construction costs totalled £1,051,979.

The Joint Administrators paid ADNC Projects Limited £7,522 in respect of repairs to the roof at the hotel and Berry's £3,550 in respect of a planning application for updated floorplans that were incurred in December 2023.

Furthermore, the Joint Administrators also paid £5,571 to Venture Management Consulting Ltd for project management services at the Hotel.