Sale of the Croydon Park Hotel was “not ideal” according to government inspectors

By Tara O’Connor, local democracy reporter

The sale of the Croydon Park Hotel was “not ideal” according to government inspectors who advised delaying a deal.

A report from the Croydon Improvement and Assurance Panel published this week has criticised the council’s sale of the controversial hotel.

It reads: “Given the impact of Covid-19 on the hospitality sector, disposing of a hotel in the current climate is not ideal.

“The council’s cabinet will need to consider whether delaying the sale and perhaps finding an alternative source of income from the venue in the interim offers the potential for a more favourable outcome overall.”

But, since the report was written in August, the council has decided to push ahead with the sale of the hotel.

Last month, the council’s cabinet approved the sale after receiving bids of at least £19.5 million.

This means the council stands to lose up to £10 million after buying the hotel for £29.8 million in 2018 – it went into administration in June 2020.

At a cabinet meeting last month, member for resources and financial governance, Councillor Callton Young said selling off the hotel will save the council £610,000-a-year in running costs.

He said: “We’ve got a better price than we anticipated and it is going to help us to fix the problem overall.”

The Improvement and Assurance Panel was set up in February and will be in place until March 2024 and will report back to the MHCLG and the secretary of state on the progress of the council.