Acquisition of joint venture interest

RNS Number : 9572Z

PPHE Hotel Group Limited

16 January 2020

 

16 January 2020 

PPHE Hotel Group Limited

("PPHE" or the "Company")

Acquisition of joint venture interest

PPHE, the international hospitality real estate group which owns, co‐owns and develops hotels and resorts, is pleased to announce that, further to the announcement of 14 March 2019, it has acquired from its joint venture partner its 50% interest in W29 Development LLC, a Delaware limited liability company (the "JV Company"), for a total consideration of US$ 3.3 million plus associated acquisition costs. As a result, the Company now owns 100% of the JV Company and the associated joint venture arrangements have been terminated. The acquisition was funded from the Company's existing cash resources.

Following completion of the acquisition, the total investment by PPHE in this project (including
US$ 22.1 million of bank debt) is US$ 43.0 million.

The JV Company owns the properties located at 538, 540 and 542 West 29th Street, New York. The Company plans to develop its first art'otel in New York and will shortly be progressing the next stage of the development of the property to facilitate this.

Boris Ivesha, President and Chief Executive Officer of PPHE, commented:

"This acquisition enables PPHE to fully control the design and construction process of what will be our first hotel in New York. We are excited about bringing our art'otel brand to New York and will utilise our 30-year track record to ensure we create value for our shareholders and offer guests a fantastic new destination expected in 2023."

Enquiries: PPHE Hotel Group Limited
Daniel Kos, Chief Financial Officer & Executive Director
Inbar Zilberman, Chief Corporate & Legal Officer	Tel: [phone]
Lisa Woodman, Director of Corporate Communications	Tel: [phone]
Hudson Sandler
Wendy Baker / Lucy Wollam	Tel: [phone]

Notes to Editors

PPHE Hotel Group is an international hospitality real estate company, with a £1.7 billion portfolio (valued as at summer of 2019 by Savills) 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 primary focus is 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.

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 one of the largest owner/operators of hotels in central London and its property portfolio comprises of 37 hotels and resorts in operation, offering a total of approximately 8,800 rooms and 8 campsites, offering approximately 6,000 units. PPHE Hotel Group's development pipeline includes two new hotels in London and one in New York City which are expected to add an additional 600 rooms by the end of 2022/2023.

PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange and a constituent of the FTSE 250. 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.

Company websites

www.pphe.com
www.arenahospitalitygroup.com 

For reservations

www.parkplaza.com
www.artotels.com
www.arenahotels.com  
www.arenacampsites.com 

For images and logos visit

www.vfmii.com/parkplaza

 

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