He was created a Knight of the Order of St John on 18 December 1980.
Hilton invested in Britannia Park, an ill-fated venture to build a theme park in Derbyshire. The company went bankrupt in 1985, only ten weeks after its opening, owing him £28,000. He was forced to sell his garden nursery business as a result.
On 12 June 1993, he was made a KCVO in the Birthday Honours List. He died in 1995 and is buried at Idridgehay.
Sir Peter Hilton Court at the University of Derby is named in his honour.