Park Plaza Westminster Bridge London refinanced in £182.4m deal

12 May 2016 by
Park Plaza Westminster Bridge London refinanced in £182.4m deal

The agreement, which has been secured by PPHE Hotel Group, owner and operator of the four-AA-star hotel, is part of a wider long-term refinancing programme of the company's assets.

Last month, the four-AA-star, 299-bedroom Park Plaza Victoria London announced a £87m, 10-year refinancing agreement with Cornerstone Real Estate Advisers Europe. Involving a fixed interest rate of 3.41% per year, the deal followed an independent valuation of the hotel at £161.5m.

The new facility for the Park Plaza Westminster Bridge London has been arranged with AIG Asset Management (Europe). The finance will be used to repay £104.2m of a loan with the Bank Hapoalim Luxembourg, which is due to mature in June 2018, with the balance to be used for general corporate purposes. PPHE's interest in the hotel, comprising 499 bedrooms and the public areas, has been valued independently at £370m.

The new funding is expected to be confirmed on 18 May 2016.

Boris Ivesha, president and chief executive of PPHE Hotel Group, said: "The current favourable market conditions have enabled us to continue our ongoing programme for the long term refinancing of assets within the Group.

"This agreement marks the start of a new relationship with AIG Asset Management and enables us to further invest in our flagship hotel, Park Plaza Westminster Bridge London, as we remain focused on growing our market share and delivering great customer service."

The PPHE Hotel Group operates hotels under the Park Plaza and art'otel brands, It currently has 38 hotels in six countries, with nine hotels and four projects in the UK.

PPHE's revenue for Q1 2016 remains flat >>

PPHE enters into £87m refinancing agreement of Park Plaza Victoria London >>

PPHE Hotel Group UK announces managerial appointments >>

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TagsFinance and Hotels
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