Preston’s Park Hotel set for £70m transformation

An £8.6m government funding package has been secured to support the transformation of Preston’s long-vacant Park Hotel site into a major mixed-use development.

The funding, awarded through Homes England’s final round of the Building Infrastructure and Land Fund (BIL Fund), will help unlock the £70m project to redevelop the prominent city centre landmark.

Developer Heaton Group plans to convert the historic building into a 92-bedroom apart-hotel alongside the construction of 239 apartments.

The former hotel has stood empty since 2011, when Lancashire County Council vacated the premises.

Plans for the site combine heritage refurbishment with new-build residential development.

Funding was secured through a collaboration between Preston City Council, Homes England, Hive Land and Planning and Heaton Group.

The BIL Fund is a £1bn government initiative designed to unlock housing and regeneration projects on brownfield sites.

Nick Thompson, director at Hive Land and Planning, said: “This is a fantastic outcome for Preston and we are very pleased Homes England has endorsed the city council’s regeneration vision with this substantial funding award.”

Coun Valerie Wise, cabinet member for community wealth building and city regeneration at Preston City Council, said: “We are wholly supportive of this significant collaboration, which marks a major step forward in the city’s regeneration journey.

“The Park Hotel is a beloved part of Preston’s heritage and a prominent gateway into the city. This investment is a huge boost for the area and Preston’s City Living Strategy.”

Duncan Inglis, director of MPP North at Homes England, said: “The transformation of the Park Hotel is an excellent example of how Homes England funding and cross-sector partnership working can drive regeneration and deliver new homes.

 “By unlocking a long-vacant brownfield site in the heart of Preston, this investment will deliver 239 new build-to-rent homes alongside a revitalised apart-hotel business, supporting placemaking and economic growth in the city centre.”

John Heaton, managing director of Heaton Group, said: “The Park Hotel is a cornerstone of Preston’s heritage. We’re proud to be delivering a scheme that combines regeneration, hospitality and housing.”

Graham Baldwin, vice chancellor of the University of Lancashire and chair of the Preston Regeneration Board, said: “This is an excellent example of the public and private sectors working together to deliver a quality scheme.

“Preston is a great place to live, study, work and visit, and this development will further strengthen that offer.”