Park Plaza refinances London hotels in £45m deal
PPHE Hotel Group has this morning announced a £45m plan to refinance four UK hotels, including two landmark London sites.
The Park Plaza County Hall and the Park Plaza London Park Royal are part of the agreement, along with Park Plaza Leeds and Park Plaza Nottingham.
Under the plans, Luxembourg’s Banque Hapoalim is providing the £45m facility for seven years, with a fixed interest rate of 4.4 per cent.
It is secured by mortgages for the hotels and will be used to refinance the Park Royal’s construction facility with BHI, and to repay some shareholder loans.
Last year was a bumper period for London’s hotel market, as huge numbers of tourists flooded in on the back of the weaker pound.
PPHE noted at its last results that a handful of new London hotels had boosted its performance.
The company’s shares have been steadily rising this year, gaining 74 per cent to be trading this morning at 1,425p.
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