Gloucester's The Fleece Hotel now likely to be redeveloped in 'bitesized chunks'

The latest plans for the former Fleece Hotel site in the centre of Gloucester are 'dead in the water' and a new approach is being considered, according to the leader of the city council.

By Jake Chown  |  Published
Gloucester City Council has invested £350,000 in The Fleece Hotel site to protect the historic buildings, since it became its owner in 2011. Image © Carmelo Garcia.

The redevelopment of Gloucester's Fleece Hotel site is not going ahead as previously planned due to funding issues, the leader of the city council says.

Councillor Jeremy Hilton told Carmelo Garcia, local democracy reporter, this August 2025 that plans to transform the 15th-century building on Westgate Street, along with the nearby Longsmith Street car park, into a community and business hub are 'dead in the water'.

He said a new approach to developing the site in 'bitesized' chunks is now being looked at.

Gloucester City Council revealed plans to redevelop the historic timber-framed building, which has been vacant since 2002, into a four-star hotel in 2021, as part of its £20 million bid for Levelling Up funding from the government.

While £6.3 million was secured for the project, no detailed plans were forthcoming from the council's preferred developer partner; and the funds were redistributed to The Forum and University of Gloucestershire City Campus projects in February 2024.

Then, fresh plans for a wellbeing village – consisting of supported accommodation for young people, along with mental health support, skills training provision and pop up retail, food and drink offers – were announced that same month.

But the project stalled soon after, due to issues around funding.

Councilor Hilton explained: 'The project meant they were securing £60 million in capital. That was based on the fact there would then be youngsters put in place there by the county council – they were going to fund it based on (that) guaranteed income.'

He said the city council is now looking at each of the site’s four parts – the hotel, the car park, its salt barn area and the Gloucester Academy of Music site – as separate locations for development.

'It’s a very difficult site. The car park itself has a short life expectancy,' he added.

'I think doing them in bitesized chunks is the best way forward.'

More on Gloucester City Council More

More on Gloucester More

More from Business More