PPHE funds £180m development of art’otel London Hoxton

Eloise Hanson Eloise Hanson Uploaded 08 April 2020

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UK: PPHE Hotel Group has entered into a syndicated facility agreement, arranged by Bank Hapoalim B.M., to fund the hotel’s development on Old Street.

The 27 storey, 343-bedroom hotel will include five floors of office space, a gym, swimming pool and wellness facilities, as well as an art gallery space.

The total project costs remaining for the hotel is approximately £200 million, and PPHE said it does not expect a material outflow of cash until July 2022.

Gear Construction UK Limited is to design and build the hotel on a “turn-key” basis.

Boris Ivesha, president and chief executive officer at 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.”

“We believe the project has the potential to deliver attractive risk-adjusted returns for shareholders whilst further expanding our art’otel brand.”

There art’otel brand is in locations such as Amsterdam, Berlin, Budapest and Cologne, with a 160-room hotel set to open within London’s Battersea Power Station development in 2022.

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