PPHE Hotel Group has entered into a multi-million pound funding agreement to drive two London hotel developments and accelerate further growth plans.
The group has confirmed a new joint venture with Clal Insurance, one of Israel’s top insurance and savings companies, for a cash consideration of £113.7m.
The deal sees Clal become a minority partner in JVCo, the company which operates the 646-bedroom Park Plaza London Riverbank and the 343-bedroom art’otel London Hoxton development project, scheduled to open in 2024.
Boris Ivesha, President & CEO of PPHE Hotel Group, comments: “London is one of world’s most resilient hotel and real estate markets and it typically rebounds quickly after downturns, largely due to its wide appeal to tourists and business travellers alike. We are delighted to see signs of growth and recovery already in the UK market.”
The Group remains the majority owner of the hotels by retaining a 51% holding in JVCo and, through its management company, has secured a 20-year hotel management agreement in respect of both hotels.