Real estate developer PPHE Hotel Group has entered into a £180m syndicated facility agreement arranged by Bank Hapoalim to fund the development of Art’otel London Hoxton.
PPHE said total aggregate project costs remaining for completion of the hotel were approximately £200m but stated that it does not expect a material outflow of cash to the project until July 2022 as a result of the loan, which entitles the group to temporarily unlock some of its invested equity.
The hotel will include a new 27-storey building to accommodate 343 hotel rooms and suites, five floors of office space, a gym, swimming pool and wellness facilities and an art gallery.
President and chief executive Boris Ivesha said: “We are pleased to have secured funding to develop Art’otel London Hoxton with Bank Hapoalim BM, which has been a long-standing partner of the group, funding several of our other key properties, including Park Plaza Westminster Bridge London which opened in 2010.”
“We believe the project has the potential to deliver attractive risk-adjusted returns for shareholders whilst further expanding our Art’otel brand.”