'Wholly unsatisfactory'
Alan Denby, director of the authority's services provider Pride In Place, told a council scrutiny committee the situation was "wholly unsatisfactory."
"It is my fervent hope not to have to explain any further expenditure on this. We are in a position which we do not want to be in," he said.
Council-funded building projects were agreed under the former Liberal Democrat-Independent coalition, which lost power in May.
Planning permission for the hotel was reportedly granted in 2019 and work began early the following year, with Midas Construction handling the demolition of the old car park and the building of the hotel.
'Difficult history'
Early in 2020 work was stopped because of concerns about the structure, before the Covid pandemic forced further suspension of the work. An unexpected sewer survey added another three months to the timetable.
By January 2022 work had stopped again, and the following month Midas collapsed into administration.
A report to the meeting acknowledged: "The project has had a difficult history."
Last autumn, the budget for the project increased to £14m, after the latest report noted: "The previously extended budget to complete the construction is now insufficient due to increased costs."
