REG - PPHE Hotel Grp Ltd - Major refinancing extending maturity to 2031

PPHE HotelAnnouncement

05/09/2024 07:00

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RNS Number : 9533C  PPHE Hotel Group Limited  05 September 2024

 

5 September 2024

 

PPHE Hotel Group Limited

("PPHE" or the "Group")

 

Major refinancing extending maturity to 2031

 

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 to refinance its existing loan with Aareal Bank
AG ("Aareal'') in relation to all six of its Dutch hotels (art'otel Amsterdam,
Park Plaza Victoria Amsterdam, Park Plaza Vondelpark, Amsterdam, Park Plaza
Amsterdam Airport, Park Plaza Eindhoven, and Park Plaza Utrecht) (the "Dutch
Hotels") and Holmes Hotel London ("Holmes"). This refinancing extends the
existing 2016 facility with Aareal relating to these hotels (the "Existing
Facility") from its original maturity date of June 2026 with a new maturity
date in June 2031.

 

Under the new terms, the facility will comprise two tranches, a €160,000,000
tranche (the "EUR Tranche") and a £16,000,000 tranche (the "GBP Tranche").
The EUR Tranche attracts an all-in fixed interest rate of 2.765% until June
2026*, following which, an all-in fixed interest rate of 4.49% will apply
until maturity. The GBP Tranche will bear an all-in fixed interest rate of
3.9% until June 2026*, following which a competitive floating interest rate
will apply. This compares with an all in fixed interest rate of 2.165% in
respect of the EUR loan and a fixed interest rate of 3.3% in respect of the
GBP loan that applied under the terms of the Existing Facility.

 

The facility agreement includes financial covenants based on loan to value and
debt service commensurate with this type of facility.

 

The refinancing is based on independent valuations commissioned by Aareal
confirming an aggregate market value of the Dutch Hotels and Holmes at EUR 414
million** which is in line with the market valuations performed in December
2023 for the purpose of reporting the Group's EPRA NRV.

 

The new facility is non-recourse and will be secured by Aareal's existing
security package, including  mortgages over the Dutch Hotels and Holmes
Hotel.

 

Daniel Kos, Chief Financial Officer of the Company, commented:

 

"The new facility continues our strong relationship with an existing lender,
Aareal Bank AG. It also further confirms the Group's attractive and stable
asset base in key city-centre locations, enabling the Group to secure long
term financing on attractive rates, particularly in current market conditions
whilst also re-confirming the Group's EPRA NRV.

 

The Company takes a proactive approach to its debt financing and this
refinancing takes advantage of the inverted interest curve at the point of
original maturity whilst also benefiting from a low margin over a longer
period of time."

 

 

*Marginal top up amounts for rounding of the EUR Tranche and GBP Tranche are
left floating.

** The GBP amount of this aggregate market value attributed to Holmes was
converted into EUR using an exchange rate of 1.19

 

 

- 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
 Hudson Sandler                                                 Tel: +44 (0)20 7796 4133
 Wendy Baker / Lucy Wollam / 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 2023 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.

 

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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