Refinancing of Park Plaza Victoria London

RNS Number : 4607T

PPHE Hotel Group Limited

30 March 2016

 

30 March 2016

PPHE Hotel Group Limited

Refinancing of Park Plaza Victoria London

PPHE Hotel Group Limited (the Company), which together with its subsidiaries (the Group) owns, leases, develops, operates and franchises full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe, is pleased to announce that it has entered into an agreement to refinance Park Plaza Victoria London.

The new £87,000,000 ten year facility will be secured on Park Plaza Victoria London (a 299 room freehold hotel) and will bear a fixed interest rate of 3.41% per annum.

The new facility has been arranged by Cornerstone Real Estate Advisers Europe LLP, a member of the Mass Mutual Financial Group (Cornerstone).

The new facility will be secured by, inter alia, a first legal charge over Park Plaza Victoria London and pledges over the shares in the company which owns the freehold of the hotel and its related operating subsidiaries. As part of the process of putting the new facility in place an independent valuation of Park Plaza Victoria London was obtained that valued the hotel at £161.5 million.

The hotel is presently part of a five year term facility comprising a sterling tranche and a euro tranche provided by Aareal Bank AG which will remain in place secured on two of PPHE Hotel Group's London hotels and six of its Dutch hotels.

The new facility will be used to repay £64.8m of the Aareal Bank facility and the balance will be used to fund the Group's ongoing development programme of new hotels and corporate purposes.

The new facility agreement is subject to certain conditions precedent being fulfilled, and funding is expected to take place on 5 April 2016.

The Group continues to evaluate financing proposals for some of its other assets and is currently in discussions regarding  long term financing for another of its London hotels.

Boris Ivesha, President & Chief Executive Officer of PPHE Hotel Group Limited, commented:

"As previously announced, the Board is keen to take advantage of current favourable market conditions and we are delighted to have secured the refinance of Park Plaza Victoria London. This agreement marks the start of a new relationship with Cornerstone and Mass Mutual and we are delighted with their commitment and support.

The new facility enables us to invest further in this well-established and well-performing hotel and our experienced management will continue on optimising its performance, growing its market share and delivering great customer service."

Enquiries:

PPHE Hotel Group Limited
Chen Moravsky, Deputy Chief Executive Officer & Chief Financial Officer	Tel: [phone]
Hudson Sandler Financial Public Relations
Wendy Baker / Katie Matthews	Tel: [phone]

Notes to editors

PPHE Hotel Group Limited is a Guernsey registered company and through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe.

The majority of the Group's hotels operate under two distinct brands, Park Plaza^® Hotels & Resorts and art'otel^®. The Group has an exclusive licence from Carlson, a global privately held hospitality and travel company, to develop and operate Park Plaza^® Hotels & Resorts in Europe, the Middle East and Africa. The art'otel^® brand is fully owned by the Group.

The Group has a minority ownership interest in the Arenaturist group, one of Croatia's leading hospitality companies.

The portfolio of owned, leased, managed and franchised hotels comprises 38 hotels in operation offering a total of more than 8,300 rooms. The development pipeline includes five new hotel projects and one hotel extension and reconfiguration. These developments are expected to add nearly 1,100 rooms to our portfolio by the end of 2016 and an additional 500 rooms by the end of 2019.

Our Company:
www.pphe.com

Our Hotel Brands:
www.parkplaza.com
www.artotels.com
www.arenaturist.com

For images and logos visit www.vfmii.com/parkplaza

Forward-looking statements

This announcement may contain certain "forward-looking statements' which reflect the Company's and/or the Directors' current views with respect to financial performance, business strategy and future plans, both with respect to the Group and the sectors and industries in which the Group operates. Statements which include the words "expects", "intends", "plans", "believes", "projects", "anticipates", "will", "targets", "aims", "may", "would", "could", "continue" and similar statements are of a future or forward-looking nature. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Group's actual results to differ materially from those indicated in these statements. Any forward-looking statements in this announcement reflect the Group's current views with respect to future events and are subject to risks, uncertainties and assumptions relating to the Group's operations, results of operations and growth strategy. These forward-looking statements speak only as of the date of this announcement. Subject to any legal or regulatory obligations, the Company undertakes no obligation publicly to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to the Group or individuals acting on behalf of the group are expressly qualified in their entirety by this paragraph. Nothing in this announcement should be considered as a profit forecast.

 

END

 

 

MSCEAXDNAENKEFF