The funding was acquired following an agreement with Bank Hapoalim B.M, and the initial maturity date of the facility is April 2024.
The development 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.
The total remaining aggregate costs for the completion of the hotel are approximately £200m. PPHE said that it has contributed a “material part of its equity commitment” for the project, and therefore does not expect a material outflow of cash until July 2022.
The agreed facility will now entitle the group to temporarily unlock some of its invested equity of up to £43m, and reinvest this equity “in line with the progress of the project”.
In its latest update, the group also confirmed that it has entered into a building contract with Gear Construction UK Limited for the design and construction of the hotel.
The period for completion of the hotel under the building contract has now been extended to 44 months.
Boris Ivesha, president and chief executive officer of 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.”