The second quarter of 2018 will see construction start on a new hotel in London’s Hoxton, after more than eight years in the planning pipeline.
In the next few months work will begin on art’otel London Hoxton, spearheaded by owners PPHE Hotel Group, which will see a new 18-storey, 350-bedroom property created near Old Street in the city.
The news follows on from the announcement on January 24 that the group had exchanged contracts to buy from its joint venture partner its 50% interest in the development site for a consideration of £35m.
The acquisition is being funded through cash resources, with the sale expected to be completed by the end of March 2018.
The art’otel London Hoxton will be striking from the outside, with a cylindrical shape, bronze-coloured building and inside home to 350 bedrooms, a gallery space, arthouse cinema, spa and restaurant.
Once open, art’otel London will join the other properties in Europe, with four in Germany and one each in Amsterdam and Budapest. The second London art’otel is scheduled to open in 2019 in the Battersea Power station development.
The news of the construction start date comes after PPHE Hotel Group posted its yearly financial results, which has seen revenue increase by 19% YOY, bolstered by the new room inventory in London with the full opening of Park Plaza London Waterloo and Park Plaza Park Royal.
Boris Ivesha, president & chief executive officer, PPHE Hotel Group said: “A number of milestones have been achieved throughout 2017 for the Group. We opened two London hotels and embarked on a number of extensive renovation plans across Europe, ensuring that our product remains of the highest standard at all times. Overall we saw our reported Group hotel revenue increase by 19.0% with 2017 demonstrating a strong trading year for the Group.
“Whilst we recognise that certain cost pressures and renovation programmes may have an effect on our performance, we are confident about our long term prospect and as we enter 2018, we will remain focused on providing exemplary service to our guests, revenue generation and the delivery of our renovation projects.”