REG - PPHE Hotel Grp Ltd - Sale of New York development site

PPHE HotelAnnouncement

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RNS Number : 4042T  PPHE Hotel Group Limited  18 February 2026

 

18 February 2026

PPHE HOTEL GROUP LIMITED

("PPHE Hotel Group", "PPHE" or the "Group")

 

Sale of New York development site

 

PPHE Hotel Group, the international hospitality real estate group which
develops, owns and operates hotels and resorts, announces that its
wholly-owned subsidiary has entered into an agreement for the sale of its
development site located in Manhattan, New York.

 

This New York City site was acquired in 2019 with a view to developing the
Group's first hotel in the US. However, subsequent to the acquisition, the
regulatory landscape for ground-up hotel developments in New York
significantly altered, which led the Group to conclude that a hotel
development is not viable for this site. The Group has optimised the site to
maximise its exit value through demolition works and the acquisition of air
rights.

 

The transaction has been structured as a sale of the freehold of the site to a
US real estate developer for a purchase price of $33.5 million. There are no
due diligence conditions to consummate the sale, and it is expected that the
disposal will close in the coming months. The sale proceeds will be used to
repay the associated debt of $8.3 million, with the balance of funds to be
deployed in accordance with the Group's capital allocation strategy.

 

Greg Hegarty, Co-CEO of PPHE, commented:

 

"We are pleased to exit this longstanding development site near Hudson Yards
in New York, which demonstrates the Group's focus on and the proactive pursuit
of its strategy. The site was acquired in 2019 with the intention of
developing a hotel and condominiums. However, with the significant changes to
the regulatory landscape following acquisition, we believe this disposal
presents an opportunity for us to release capital, which can be redeployed
into our core geographic regions."

 

 

Enquiries

 PPHE Hotel Group Limited                                      Tel: +31 (0)20 717 8600

 Daniel Kos, Chief Financial Officer & Executive Director

 Inbar Zilberman, Chief Corporate & Legal Officer

 Robert Henke, Executive Vice President Commercial Affairs

 Hudson Sandler                                                Tel: +44 (0)20 7796 4133

Email: pphe@hudsonsandler.com (mailto:pphe@hudsonsandler.com)
 Wendy Baker / Nick Moore / India Laidlaw

 

Notes to Editors

 

PPHE Hotel Group (LSE: PPH) is an international hospitality real estate
company, with a £2.2 billion portfolio*, valued as at December 2024 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(1) 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 ('AHG'), whose shares are listed on the
Prime market of the Zagreb Stock Exchange.

 

*In the event of a firm offer being announced for the Company, 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: PPHE Hotel Group (https://www.pphe.com/) | Arena Hospitality
(https://www.arenahospitalitygroup.com/) Group
(https://www.arenahospitalitygroup.com/)

 

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