Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
PPHE has signed a deal to acquire a mixed-use development site to be developed into a Radisson Red lifestyle hotel with a minimum of 182 bedrooms in central London.
The 3,000 sqm mixed-use development site, which will also house a restaurant, bar, gym and office space, is located near the City of London and Tower Bridge, with planning permission.
PPHE said it expects an all-in investment of around £90m for the project, including a site acquisition price of £17.5m, with an expected running unlevered annual yield of high single digit at stabilisation.
Radisson said the closing of the transaction is expected in the coming months, with the hotel scheduled to open in 2029.
The development site currently features two old office buildings which will be demolished, and the intended development will focus on sustainability targeting a BREEAM ‘Excellent’ environmental accreditation.
The acquisition marks PPHE’s first entry into the area east of the City of London, close to both the heart of London’s financial district and a few minutes’ walk from Liverpool Street Station. It is also close to some of London’s most famous landmarks such as Tower Bridge and the Tower of London.
PPHE added that the investment is in line with its multi-brand and multi-market segment strategy which ranges from upscale, to upper upscale and premium lifestyle properties and joins the group’s current London pipeline of select service hotels.
The introduction of the Radisson Red brand to central London adds to its current footprint of upper upscale Park Plaza properties and its premium lifestyle offering which comprises two Art’otel branded properties in Hoxton and Battersea and the Holmes Hotel on Chiltern Street.
Greg Hegarty, co-CEO 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.”
Elie Younes, executive vice president and global chief development officer at Radisson Hotel Group added: “Over 65% of our owners have more than one hotel with us, due to the relevance of our brands, our approach, and results.
“This marks our first Radisson Red in central London and reflects our commitment to growing our lifestyle portfolio in key global cities. We value our long-standing partnership with PPHE Hotel Group and are grateful for their continued trust in our brands and people.”
