A leading global hotel group has called for Network Rail’s £1.2 billion redevelopment of Liverpool Street Station to be rejected or deferred, warning that the project may never be completed.
James Francque, global head of transactions at Hyatt, said the proposals were “not financially viable, offer limited operational benefit, and carry a high risk of non-delivery”.
“For these reasons, we are calling for a rejection, or at a minimum, the deferral, of the current application, to ensure any future scheme represents clear value for public investment,” Francque said.
The comments come ahead of a meeting of the City of London Corporation’s planning committee on Tuesday, where members will decide the fate of the controversial scheme. Planning officers have recommended approval, despite more than 2,300 objections being lodged.
Hyatt said Network Rail’s own planning documents reveal a funding shortfall of around £220 million, a figure that does not include potential compensation payments to train operators for disruption during construction, raising doubts over whether the project could be delivered in full.
While supporting the “urgent redevelopment” of the station in principle, Francque warned that commuters, businesses and visitors could face “many years of disruption and uncertainty” under the current plans.
Liverpool Street is Britain’s busiest railway station, with close to 100 million entries and exits recorded last year. Passenger numbers are forecast to rise to 158 million by 2041, adding pressure to modernise the ageing infrastructure.
Network Rail’s proposals involve partial demolition of the station to expand the concourse, alongside the introduction of step-free access across all mainline and Underground platforms. To help fund the works, the plans also include the construction of a 19-storey office block above the station — the most contentious element of the scheme.
Hyatt owns the Andaz London Liverpool Street, which sits on the corner of Bishopsgate and Liverpool Street. In its submission, the company said it had experienced “limited engagement and communication” from Network Rail during the development of the plans.
“The scheme represents the worst of all possible worlds in terms of impact and disruption, with no added benefit to the Andaz, which we believe will be threatened by the proposals,” Hyatt said.
The proposed office block would effectively enclose the hotel in a “sarcophagus manner”, the company argued, potentially rendering rooms at the rear of the building unusable.
Network Rail defended the redevelopment, saying it was essential to meet future demand. A spokesperson said: “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, and 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.”
The planning decision is expected to be closely watched by developers, transport operators and businesses across the City, given the scale of the project and Liverpool Street’s central role in London’s transport network.