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PPHE Hotel Group, has announced it has agreed a £45m deal to refinance its interests in four hotels in the UK.
The group that operates the Park Plaza brand and owns the Art’otel brand said that the four hotels to be refinanced have been named as the Park Plaza London Park Royal, Park Plaza County Hall London, Park Plaza Leeds and Park Plaza Nottingham.
Banque Hapoalim S.A will be providing the new £45m facility, which will be for a term of seven years and will bear a fixed interest rate of 4.367% per annum.
The Facility will be secured by mortgages over the group’s ownership interests in the hotels and security over the shares in the group companies that own such interests in the hotels.
The Facility will be used to refinance the existing 2016 Park Plaza London Park Royal construction facility with BHI in full and to repay certain shareholder loans and for general corporate purposes.
Drawdown under the Facility is subject to certain conditions precedent being fulfilled and funding is expected to take place by the end of June 2018. It is further subject to certain conditions subsequent being fulfilled within one year.
The group’s portfolio of owned, leased, managed and franchised hotels comprises of 39 hotels in operation offering a total of approximately 9,000 rooms.
The group’s development pipeline also includes two new hotels which are expected to add an additional 500 rooms by the end of 2022.
