Kier set to lose £6m on hotel in Liverpool One scheme

Kier could lose up to £6m on a hotel contract on Grosvenor’s £1bn Liverpool One development, it is understood.

The £60m Hilton hotel project, which was designed by Aedas and Squire and Partners, was originally due to be handed over in March this year. However, Kier is still on site and it is understood that it is not expected to be ready for opening until the autumn, about six months after the original completion date.

A source close to the scheme said that the hotel had “been a difficult contract” and that there had been issues with subcontractor accounts coming in higher than expected.

The problems at the scheme come at a turbulent time for Kier in the north of England.

In a move unconnected to the hotel scheme – which is being run by Kier Build, the national contracting division – the contractor’s northern regional business has parted company with managing director William Kay. The departure came as part of a restructuring of Kier Northern, which has been carried out in response to the recession.

A Kier spokesperson said the restructuring “reflects a realignment of operational responsibilities in response to the current economic climate that the industry is facing”.

In relation to the Hilton hotel contract, the spokesperson said Kier “does not comment on contractual or financial issues”.

However, he said: “We are making very good progress on site and we are dealing amicably with our client on the project, which, upon completion, will be a remarkably attractive building.”

The hotel is one of the final elements of the Liverpool One regeneration scheme. The building will have 216 rooms on the first eight floors and 47 apartments on a further four floors.