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Cambridge Apartment Hotels, a subsidiary of the Lamington Group, has exchanged contracts with Cambridgeshire County Council on a 250-year lease for Shire Hall and associated buildings.
The former council building is set to become a hotel following the finalisation of a long-delayed sale, with completion expected within 18 months.
Lamington, which operates sustainable hotels across the UK, will require planning permission before redevelopment can begin.
The lease includes Shire Hall, the adjoining Octagon building, the former registry office in Castle Lodge and the Old Police Station.
The portfolio was remarketed in February 2024 by BNP Paribas Real Estate after a previous sale fell through.
The council vacated the site in 2021, moving its headquarters to New Shire Hall in Alconbury Weald. It later opted to sell the Cambridge buildings, while retaining public access to Castle Mound, a scheduled ancient monument.
Lucy Nethsingha, council leader, said: “The sale of Old Shire Hall has been a very difficult process, given the impact of first Covid and then world economic instability. It has been sad for the community to see this much-loved building standing empty, so I am pleased that we are now able to announce the next steps for this building.
“Lamington has a strong record of creating high quality and sustainable destinations, and we share their optimism that this new hotel will be a major asset for visitors and the community alike.”
