PPHE Hotel Group announced that certain of its wholly-owned subsidiaries have entered into a facility agreement with Aareal Bank AG (Aareal) to refinance three of the group’s four owned London hotels - Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes - and five Dutch hotels which it operates and owns - Park Plaza Victoria Amsterdam, Park Plaza Vondelpark, Park Plaza Eindhoven, Park Plaza Amsterdam Airport and Park Plaza Utrecht (the London and Dutch hotels, together the Hotels).
At the group’s option and subject to satisfaction of certain conditions, the facility will also refinance the existing development facility for the recently opened art’otel amsterdam, which matures in Q1 2014.
The refinancing involves a five-year term facility comprising a sterling tranche of £167 million and a euro tranche of €153 million. The Hotels were previously financed by three separate facilities provided by Aareal with various maturity dates between December 2013 and September 2017. As well as refinancing the existing facilities, the facility will fund capital expenditure at the Hotels.
The facility will be secured by, inter alia, first legal charges over each Hotel and pledges over the shares in each hotel owner and their related operating subsidiaries.
The facility agreement, which is subject to certain conditions precedent being fulfilled, is expected to complete on December 3, 2013. Further details on the facility agreement will be provided to shareholders on or about that date.
Boris Ivesha, President & Chief Executive Officer of PPHE Hotel Group Limited, commented: "We are delighted to have secured the refinance of these hotels. This agreement builds on the group’s existing relationship with Aareal Bank AG in the UK and the Netherlands and we are delighted with its continuing confidence, commitment and support.
“The new facility enables us to invest further in these well-established and well-performing hotels and our experienced management will continue on optimizing their performance, growing their market share and delivering great customer service."
Source: PPHE Hotel Group