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PPHE Hotel Group has agreed an £88m refinancing for Park Plaza Victoria London as part of a wider programme to secure long-term funding for its hotel portfolio.The new five-year facility has been arranged by Santander UK and ABN AMRO Bank and will replace an existing loan with Barings that is due to mature in the first quarter of 2026.
It follows the group’s refinancing of Park Plaza London Riverbank in November 2025, as PPHE continues to restructure debt across selected assets.
The facility will carry a floating interest rate, with 90% hedged at an all-in rate of 3.9%. This compares with an all-in fixed rate of 3.42% under the existing Barings facility.
The loan will be secured by a first legal charge over the hotel, alongside pledges over the company that owns the freehold and its operating subsidiaries. It also includes financial covenants linked to loan-to-value and debt service metrics, which are standard for this type of financing.
Completion of the refinancing is subject to certain conditions being met, with funding expected to take place on 18 December 2025.
Daniel Kos, chief financial officer of PPHE Hotel Group, said: “We are pleased to announce a second major refinancing this quarter, underlining the strength and breadth of our banking partnerships. Park Plaza Victoria London was one of the Group’s first London hotels and has been a strong contributor to the group since opening in 2001.
“The hotel is currently undergoing a capex investment programme, which will see all guest rooms upgraded in the first half of 2026. The new facility supports our overall ambition of driving value for our shareholders and delivering an outstanding guest experience.”
