Business
Acquisition of development site
Acquisition of development site.
About this update from Pphe Hotel Group Limited
[{"type":"text","content":"\n\n\n23 June 2025\n \nPPHE HOTEL GROUP LIMITED\n(\"PPHE Hotel Group\", \"PPHE\" or the \"Group\")\n \nAcquisition of development site, earmarked for the first PPHE Select Service hotel in London\n \nPPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, is pleased to announce that the Group, via a subsidiary of its European Hospitality Real Estate Fund (the \"Fund\"), has entered into an agreement for the acquisition of a 13,000 sqm mixed-use development site in a prime central location near the City of London and Tower Bridge, with planning permission.\n \nDue to open in 2029, the hotel will feature a select service Radisson RED lifestyle hotel, with a minimum of 182 bedrooms, a restaurant, bar and gym and 41,000 sq. ft. of office space. The Group expects an all in investment of circa £90 million for this project, including a site acquisition price of £17.5 million, with an expected running unlevered annual yield of high single digit at stabilisation. The development will focus on sustainability targeting a BREEAM 'Excellent' environmental accreditation.\n \nThe acquisition marks PPHE's first entry into the area east of the City of London; close to both the heart of London's financial district with a few minutes' walk from Liverpool Street Station, while also close to London's creative east-end and some of its most famous landmarks such as Tower Bridge and the Tower of London. It also marks the second property to be acquired by the Fund in line with its strategy, following the earlier acquisition and development of the recently opened five-star art'otel Rome Piazza Sallustio.\n \nThis investment is in line with PPHE's multi-brand and multi-market segment strategy which ranges from upscale, to upper upscale and premium lifestyle properties and joins the Group's current London pipeline of Select Service hotels. The introduction of the Radisson RED brand to central London adds to the Group's strong current footprint of upper upscale Park Plaza properties and its premium lifestyle offering which comprises two art'otel branded properties in Hoxton and Battersea and the Holmes Hotel on Chiltern Street.\n \nThe European Hospitality Real Estate Fund will fund the initial acquisition with the Group securing construction finance for the d...