Buxton Crescent defaults on £11m loan to Derbyshire County Council

Derbyshire County Council was just one of the funders who helped get the multimillion pound Grade I listed spa and hotel back open.

However, it has been reported by the BBC Buxton Crescent Ltd has defaulted on loan repayments worth £11.4m.

A statement from Derbyshire County Council said: “Buxton Crescent Ltd have unfortunately defaulted on the payment of a loan made by the county council for the Buxton Crescent Hotel.

"We are in talks with Buxton Crescent Ltd to explore options to protect our investment as well as support the viability of the hotel.”

It has also been reported the council wrote off £566,000 and £162,000 of interest on the loan for 2020/ 2021.

Covid grant funding paid off those debts, the council said.

In March 2023, the company behind the biggest redevelopment in the town centre in a generation, said it ‘may not... be able to commence’ loan repayments worth £11.4m due to the ‘hotel’s weaker than anticipated revenues and high cost of energy’, reported the BBC.

Buxton Crescent was built in the 1780s by the fifth Duke of Devonshire as the centrepiece of his Georgian Spa development at Buxton.

The building, which previously held the town’s library, had been vacant for years, before work to reopen it as a 80-bed hotel and spa began.

The revonation came to almost £70m, with a £23.8m grant from the National Lottery Heritage Fund, another £2m grant from D2N2 Local Enterprise Partnership and £600,000 grant from Historic England.

There were also a contribution from £13.4m from Derbyshire County Council, and £1.1m £1.1m contribution from High Peak Borough Council which were to be repaid.The crescent building has a varied history and it is jointly owned by Derbyshire County Council and High Peak Borough Council which also own the Natural Baths.

Buxton Crescent Limited is jointly owned by CP Holdings and the Trevor Osborne Property Group Ltd, and the hotel and spa is operated by Ensana.

Derbyshire County Council, Buxton Crescent and Thermal Spa Heritage Trust Ltd and Ensana have all been contacted for updates on the situation regarding the missed payments and what it means for the business as a whole.