Business
Joint Venture for art'otel in New York City
Joint Venture for art'otel in New York City.
About this update from Pphe Hotel Group Limited
[{"type":"text","content":"\n \nRNS Number : 8129S PPHE Hotel Group Limited 14 March 2019 \n\n \n \n \n \n14 March 2019\nPPHE Hotel Group Limited\n(\"PPHE\" or the \"Company\" or the \"Group\")\nJoint Venture for art'otel® in New York City\n \nPPHE, an international hospitality real estate group, is pleased to announce that on 13 March 2019 the Company, through a wholly-owned subsidiary, entered into a joint venture agreement with Largo 542 West 29th Street Partners LLC, an affiliate of Largo (\"Largo\"), a New York based real estate development and investment firm, to acquire properties located at 538, 540 and 542 West 29th Street, New York, United States of America (together \"the Property\"). The aggregated consideration for the acquisition of the Property was US$ 42 million plus associated acquisition costs.\nThe joint venture intends to develop a mixed-use scheme consisting of a 98-room art'otel® branded hotel with extensive public areas and 55 residential condominium units (the \"Project\"). PPHE and Largo each hold a 50% interest in the joint venture and, once the hotel is operational, PPHE will manage it under a management contract. \nThe Property is located in West Chelsea by the popular and regenerated High Line on the West Side of Midtown Manhattan, a short walk from the Meatpacking District, Penn Station, Madison Square Garden and immediately adjacent to Hudson Yards, the largest private development in the US. This area has undergone large-scale redevelopment in recent years, creating a buzzing new neighbourhood known as the preeminent art gallery district in New York City, renowned for restaurants and bars and is an ideal location for the Group's art-inspired lifestyle art'otel® brand. The interior design of the art'otel will be inspired by a signature artist, whose original works will be displayed, and the hotel will offer a destination restaurant and bar. \nThis Project is in line with PPHE's development strategy to target real estate in prime locations and attractive geographies where it believes there is significant upside potential to drive growth and long-term value through both its property portfolio and operations. This Project is also part of the Group's plan to bring art'otel® to major cities, building on the success of the brand in Amsterdam, Berlin, Cologne and Budapest, and the developme...