PPHE Hotel Group has entered into a syndicated facility agreement arranged by Bank Hapoalim for a facility of up to €204m (£180m) to fund the development of art'otel london hoxton on a site located by Old Street, Rivington Street, Great Eastern Street and Bath Place, London EC1. The total aggregate project costs remaining for completion of the Hotel are approximately €226.8m (£200m). The Group has contributed a material part of its equity commitment for this project as required under the facility and therefore does not expect a material outflow of cash in respect of this project until July 2022. The loan entitles the Group to temporarily unlock some of its invested equity of up to €48.7m (£43m), at the Group’s election, in which case the unlocked equity will then be reinvested in line with the progress of the project.
Boris Ivesha, President & Chief Executive Officer, PPHE said: “We are pleased to have secured funding to develop art’otel london hoxton with Bank Hapoalim B.M. which has been a long-standing partner of the Group funding several of our other key properties, including Park Plaza Westminster Bridge London which opened in 2010. The development, which is in one of London’s most exciting neighbourhoods, will include a new 27 storey building to accommodate 343 hotel rooms and suites, five floors of office space, a gym, swimming pool and wellness facilities and an art gallery space. We believe the project has the potential to deliver attractive risk-adjusted returns for shareholders whilst further expanding our art’otel brand.”