Amsterdam-based PPHE Hotel Group plans to refinance the Park Plaza London Riverbank for £95.8 million ($125.4 million), according to a news release.
PPHE refinanced the hotel’s existing loan — which it signed with Aareal Bank AG in 2016 — extending that loan to June 2030.
PPHE's statement said that the loan’s new terms “will continue to attract an all-in fixed interest rate of 3.248% until the original maturity date of June 2026. Following this, 85% of the loan will bear a fully fixed interest rate of 5.72% until maturity, with a competitive floating interest rate applying to the remainder of the loan. This compares with an all-in fixed interest rate of 3.248% that applied under the terms of the existing facility.”
The Park Plaza London Riverbank's new loan is no longer subject to amortization, which, PPHE added, is “expected to partially offset the impact of the increased interest on cash flow.”
PPHE Chief Financial Officer Daniel Kos said the company's “high-quality and stable asset base in key city-center locations … enable us to secure long term financing on attractive rates.”
The Park Plaza London Riverbank is on the South Bank of the River Thames close to Lambeth Bridge with views of the British Parliament buildings. PPHE acquired the 645-room hotel in Sept. 2010 for £16 million, according to CoStar. A renovation in 2016 added 150 guestrooms to the hotel.
The news comes days after PPHE’s majority owners — Eli Papouchado, who founded the hotel group in 1989, and Boris Ivesha, its president and co-CEO — said they were investigating potential investment options. These include strategies of “contributing growth capital to PPHE, to a potential partial monetization of their stakes in PPHE.”
PPHE Hotel Group is publicly listed on the London Stock Exchange. Its hotel portfolio is valued at approximately £2.2 billion. The company has 51 hotels and approximately 9,600 rooms in eight European countries, as well as eight Croatian campsites.