Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
PPHE Hotel Group has announced it has entered a refinancing agreement for its Park Plaza Victoria hotel in London.
The £87m 10-year deal – arranged by Cornerstone Real Estate Advisers Europe LLP, a member of the Mass Mutual Financial Group – will bear a fixed interest rate of 3.41% per annum.
The 299-bedroom hotel is currently part of a five-year term facility provided by Aareal Bank, which will remain in place secured on two of the group’s London hotels and six of its Dutch hotels.
The new funding, which i is subject to certain conditions precedent being fulfilled, is expected to take place on 5 April 2016. PPHE said it will be used to fund the group’s ongoing development programme of new hotels and corporate purposes.
Boris Ivesha, president and CEO, said: “As previously announced, the board is keen to take advantage of current favourable market conditions and we are delighted to have secured the refinance of Park Plaza Victoria London.
“This agreement marks the start of a new relationship with Cornerstone and Mass Mutual and we are delighted with their commitment and support.
“The new facility enables us to invest further in this well-established and well-performing hotel and our experienced management will continue on optimising its performance, growing its market share and delivering great customer service.”
The company said it is also in discussion regarding long-term financing for another of its London hotels.
