PPHE Hotel Group to open £90m Radisson Red hotel in the City of London

PPHE Hotel Group has agreed to acquire a 13,000 sq m mixed-use development near the City of London and Tower Bridge, which it plans to convert into a Radisson Red lifestyle hotel.

The hotel is due to open in 2029 as central London’s first Radisson Red. It will offer a minimum of 182 bedrooms, a restaurant, bar and gym, as well as 41,000 sq ft of office space, planning permission for which has already been secured.

The group is looking to invest around £90m into the project, which includes the site acquisition price of £17.5m.

The initial acquisition will be funded by the European Hospitality Real Estate Fund, while PPHE will secure construction finance for the rest of the development.

The deal also marks PPHE’s first entry into the City of London. Last year, the group plotted its first move east through the launch of the Art’otel London Hoxton in Old Street.

Greg Hegarty, co-chief executive of PPHE Hotel Group, said: “This site will be a great addition to our development pipeline as we continue to extend our portfolio and presence in the London market. It is an exciting project, which leverages our ‘Buy, Build, Operate’ business model and expertise, as well as our multi-brand and multi-market segment strategy. We look forward to bringing Radisson Red to central London, following our recent Radisson Red openings in Berlin and Belgrade.”

The Radisson Red brand was launched in 2015 and first entered the UK market through Glasgow. It has since expanded its portfolio to include the flagship Radisson Red Liverpool, Radisson Red London Heathrow and the soon-to-open Radisson Red London Twickenham Stadium.

PPHE Hotel Group is an international hospitality real estate group that develops, owns and operates hotels.