REG - PPHE Hotel Grp Ltd - Funding of Freehold Acquisition

PPHE HotelAnnouncement

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RNS Number : 6130X  PPHE Hotel Group Limited  23 March 2026

 

23 March 2026

 

PPHE Hotel Group Limited

("PPHE" or the "Group")

 

Funding of Park Plaza London Waterloo Freehold Acquisition

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, is pleased to announce that it
has entered into an agreement with Bank Hapoalim B.M. to fund the acquisition
of the freehold interest in Park Plaza London Waterloo (the "Hotel"), as
originally announced on 2(nd) March (the "Acquisition").

 

The new £136,450,000 facility has an initial two year term, with the right to
extend subject to certain conditions.

 

The new facility agreement is subject to certain conditions precedent being
fulfilled, and funding is expected to take place in the coming months. The
agreement includes financial covenants based on loan to value and interest
service, typical with this type of loan and the facility will be secured,
inter alia, by a first legal charge over the Group's interests in the Hotel.

 

The facility bears a floating interest rate, of which c.90% will be hedged.
The final all-in rate will be announced at completion once hedging has been
finalised. Whilst the rate is expected to exceed the Group's current average
cost of debt, the future lease payments under the original structure - under
which the Hotel carried a £210m lease liability - were projected to rise
above the anticipated cost of servicing the new £136.45m facility. As such,
this financing is both strategically and financially attractive and is
expected to be accretive to earnings over the facility term.

 

The combination of this transaction and the Acquisition has served to both
increase the Group's freehold exposure, providing protection from expected
material future rental uplifts, and to further simplify and de-risk the
Group's balance sheet position.

 

Daniel Kos, Chief Financial Officer of PPHE, commented:

 

"We are pleased to have entered into a new facility with Bank Hapoalim, which
has been a strategic partner for several decades, enabling us to acquire the
freehold interest in our flagship Park Plaza London Waterloo hotel, located on
London's thriving South Bank.

 

Opportunities to acquire marquee London assets like this do not come along
often, so we are delighted to have full ownership over the property. Over the
term this new debt facility is expected to be earnings accretive, removing a
growing future lease liability and reducing our exposure to inflation risk.

 

Importantly, the transaction further simplifies and materially de-risks our
balance sheet, building on the progress we have made across a number of recent
transactions.'

 

 

- Ends -

 Enquiries:

 

 PPHE Hotel Group Limited                                       Tel: +31 (0)20 717 8600
 Greg Hegarty, Co-Chief Executive Officer

 Daniel Kos, Chief Financial Officer & Executive Director
 Robert Henke, Executive Vice President of Commercial Affairs

 H2Radnor

 Iain Daly / Joshua Cryer                                       Tel: +44 (0) 203 897 1830

 Hudson Sandler                                                 Tel: +44 (0)20 7796 4133
 Wendy Baker / India Laidlaw                                    pphe@hudsonsandler.com (mailto:pphe@hudsonsandler.com)

 

Notes to Editors:

 

PPHE Hotel Group is an international hospitality real estate company, with
a £2.2 billion* portfolio, valued as at December 2025 by Savills
and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long
leasehold assets in Europe.

 

Through its subsidiaries, jointly controlled entities and associates it owns,
co-owns, develops, leases, operates and franchises hospitality real estate.
Its portfolio includes full-service upscale, upper upscale and lifestyle
hotels in major gateway cities and regional centres, as well as hotel, resort
and campsite properties in select resort destinations. The Group's strategy is
to grow its portfolio of core upper upscale city centre hotels, leisure and
outdoor hospitality and hospitality management platform.

 

PPHE Hotel Group benefits from having an exclusive and perpetual licence from
the Radisson Hotel Group, one of the world's largest hotel groups, to develop
and operate Park Plaza® branded hotels and resorts in Europe, the Middle East
and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the
art'otel® brand and its Croatian subsidiary owns, and operates under, the
Arena Hotels & Apartments® and Arena Campsites® brands.

 

PPHE Hotel Group is a Guernsey registered company with shares listed on the
London Stock Exchange. PPHE Hotel Group also holds a controlling ownership
interest in Arena Hospitality Group, whose shares are listed on the Prime
market of the Zagreb Stock Exchange.

 

*In the event of a firm offer being announced for PPHE, asset valuation
reports in accordance with Rule 29 of the Code will be published in due course
and by no later than publication of the scheme document or offer document.

 

Company websites: www.pphe.com (http://www.pphe.com) |
www.arenahospitalitygroup.com (http://www.arenahospitalitygroup.com)

 

For reservations: www.parkplaza.com (http://www.parkplaza.com) |
www.artotel.com (http://www.artotel.com) | www.arenahotels.com
(http://www.arenahotels.com) | www.arenacampsites.com
(http://www.arenacampsites.com) | www.radissonhotels.com
(http://www.radissonhotels.com) ]

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