Funding of Freehold Acquisition

PPHE Hotel

23/03/2026 07:00

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 2nd 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

 

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 | www.arenahospitalitygroup.com

 

For reservations: www.parkplaza.com | www.artotel.com | www.arenahotels.com | www.arenacampsites.com | www.radissonhotels.com]

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 
  END

 

 
MSCEANDAAEFKEFA