Major Hotel Chain Opposes Liverpool Street's £1.2bn Redevelopment Plans
One of the world's leading hotel groups has called for Network Rail's controversial £1.2bn Liverpool Street station redevelopment scheme to be either rejected outright or significantly deferred. Hyatt, the global hospitality giant, has issued a stark warning that the ambitious project might never reach completion, creating what it describes as "the worst of all possible worlds" for local businesses and commuters alike.
Financial Viability and Delivery Risks Highlighted
James Francque, global head of transactions at Hyatt, has publicly stated that the current proposals are "not financially viable, offer limited operational benefit, and carry a high risk of non-delivery." The hotel group's analysis of Network Rail's planning documents reveals a substantial funding shortfall of approximately £220m, a gap that could potentially derail the entire project before completion.
"For these reasons, we are calling for a rejection – or at a minimum, the deferral – of the current application," Francque emphasised. "This is to ensure any future scheme represents clear value for public investment and actually delivers on its promises to Londoners."
Planning Committee Faces Crucial Decision
The City of London's planning committee is scheduled to meet on Tuesday to make a final determination on this contentious application. Despite planning officers recommending approval, the scheme has attracted significant opposition, with over 2,300 formal objections registered against the proposals.
Hyatt has raised particular concerns about Network Rail's planning documentation, noting that the £220m funding gap does not even include compensation costs to rail operators for the inevitable disruption during construction. This omission, the hotel group argues, suggests the true financial challenges may be even greater than currently acknowledged.
Disruption Concerns for Britain's Busiest Station
Francque clarified that Hyatt fully supports investment in what he called the "urgent redevelopment" of Liverpool Street station. However, he warned that Network Rail's current approach would subject commuters, businesses, and visitors to "many years of disruption and uncertainty" without clear benefits.
Liverpool Street stands as Britain's busiest railway station, recording nearly 100 million entries and exits last year alone. Passenger numbers are forecast to surge to 158 million by 2041, creating genuine pressure for infrastructure improvements. Network Rail's plans involve partially demolishing sections of the station to expand the concourse and introduce step-free access across all rail and underground platforms.
Controversial Office Block at Heart of Dispute
To help fund these station improvements, Network Rail proposes constructing a 19-storey office block directly over the station – the most controversial element of the entire scheme. Hyatt, which owns the prestigious Andaz Hotel located just on the corner of Bishopsgate and Liverpool Street, has expressed particular concern about this aspect.
In its formal planning submission, Hyatt stated it had experienced "limited engagement and communication" with Network Rail regarding the proposals. The hotel group warned that the new office block would effectively enclose the Andaz Hotel in what it described as a "sarcophagus manner," potentially rendering rooms at the rear of the property unusable.
"The scheme represents 'the worst of all possible worlds' in terms of impact and disruption," Hyatt's submission declared, "with no added benefit to the Andaz which we believe will be threatened by the proposals."
Network Rail Defends Its Proposals
A Network Rail spokesperson responded to the criticism by stating: "The current proposals represent the most effective way to upgrade Britain's busiest station and meet the urgent needs of the millions of passengers who use it every day."
"Deliverability and public benefit are at the heart of our approach," the spokesperson continued. "Network Rail is committed to delivering this scheme, having already invested significant time and resources to bring forward a robust, future-ready proposal within a critical window to address growing customer demand."
The planning committee's decision on Tuesday will determine whether this £1.2bn redevelopment proceeds as planned or faces the significant delays and reconsideration demanded by one of the world's most prominent hotel operators.
