Stoke-on-Trent City Council has approved a financial restructuring of the Hilton Garden Inn at Smithfield in a move aimed at securing the long-term future of the city centre hotel.
The authority has agreed measures which give it the option of providing additional capital and converting its own debt into equity to rebalance the hotel’s finances over the longer term.
The council said the approach was considered “the most effective way of securing the hotel’s long-term future, preserving value and protecting the city’s wider economic interests”.
The decision comes as the latest accounts for Genr8 Smithfield Hotel Limited show the business has a substantial property asset alongside significant long-term borrowing.
Accounts for the year to October 31, 2025 show tangible fixed assets with a book value of £16.43 million, including freehold property with a carrying value of £14.73 million.
Long-term creditors stood at £20.75 million, compared with £20.44 million a year earlier. That included borrowing of £19.43 million, up from £18.79 million in 2024.
The company’s shareholders’ deficit widened from £3.43 million to £4.58 million during the year, while cash at bank and in hand stood at £398,421 at the year end, compared with £516,618 a year earlier.
Despite the balance sheet pressures, the accounts state that directors had a “reasonable expectation” that the company had adequate resources to continue operating for the next financial year and the foreseeable future.
That assessment followed a review of expenditure commitments, expected cashflows and borrowing facilities, alongside ongoing discussions with key stakeholders.
The hotel company employed an average of 46 people during the year, up from 44 in 2024.
The council’s financial involvement in the hotel dates back to the previous Tory/City Independents administration, which provided loans in 2017 and 2018 worth a total of £6.9million to support the development. A further contribution, agreed by the Labour Cabinet in 2024, was not disclosed.
But the council’s 2024/25 accounts state that Stoke-on-Trent City Council had an outstanding loan of £9.621 million to Genr8 Smithfield Hotel Ltd at 31 March 2025. (The relevant section is headed “Smithfield Hotel Loan” under 4.2.26 Events after the Balance Sheet Date.)
Hilton Garden Inn was originally developed as part of the wider Smithfield regeneration programme to help address a shortage of high-quality hotel accommodation in Stoke-on-Trent.
The authority said the restructuring would “protect a key city centre asset and support the continued regeneration of Stoke-on-Trent”.
It added: “Today it remains an important part of Stoke-on-Trent’s economy, supporting business travel, tourism, conferences, events and local jobs.”
Daily Focus asked Stoke-on-Trent City Council for details of the council’s lending and future investment plans, how much of the debt might be converted into equity, what would happen to the company if the council did not intervene and whether Genr8, its shareholders and any other lenders would be putting more money in?
The council said the information requested was “commercially sensitive” and would not be provided. A spokesperson said: “This is all not yet finalised. We’re currently going through the process and taking advice.”
