London-listed hotel group PPHE has agreed a second refinancing for one of its London hotel assets, as its business undergoes a potentially more fundamental overall review.
The latest funding arrangement covers debt against its Park Plaza hotel in the UK capital’s Victoria district. A new five year loan facility gives clarity over the coming period for an asset that continues to draw in guests, with a strong performance on both room rates, and average occupancy. The site also has a substantial potential upside, with permission to create a new hotel in the property’s basement space.
Getting the finances in order
A new funding arrangement has been agreed with Santander UK and ABN AMRO, amounting to GBP88 million, over a five year term. The loan, at 3.9%, replaces the previous facility with Barings bank, which had an interest rate of 3.42%. With the funding in place, PPHE is well placed to carry out a planned refurbishment of all the property’s guest rooms, which will take place during the first half of 2026.
Refinancing of the Victoria property follows a successful refinancing of the Park Plaza London Riverbank, which was completed in November 2025. That facility, totalling GBP95.8 million, has been extended with lender Aareal. The previous agreement, a loan at 3.248%, will run until June 2026; from that point, a new agreement will come into force, with 85% of the facility bearing 5.72% until June 2030, and the balance at a more competitive floating rate.
While the refinancing process was under way, PPHE was also facing more fundamental considerations around the group’s future. During November 2025, the company’s board announced it was undertaking a strategic review of the business. The review is designed to look at ways to enhance value for shareholders.
It could, the board has suggested, lead to the introduction of new capital into the the group, or maybe a sale of the company to a new owner. And any decision on the future of PPHE will take account of two major executives with significant share ownership positions. Eli Papouchado and Boris Ivesha between them own around 44% of the voting rights of PPHE.
PPHE is completing a cycle of recent hotel development projects, including a new art’otel in London’s Hoxton district, and an art’otel in Rome. But it also has a pipeline of new developments, ready for construction. These include the Park Plaza London South Bank, a 186 room brownfield development close to the company’s existing cluster of central London properties. The 15 storey new build block should be ready for opening in early 2027.
Bringing Radisson RED to London
The company has also announced plans for a Radisson RED hotel, the first for the brand in the UK capital. This mixed use development will feature a 182 room hotel plus restaurant, gym and office space, with completion expected in 2029.
PPHE has also won approval for a 179 room hotel to be built in basement space, beneath the Park Plaza Victoria hotel. This will utilise underused areas beneath the property. PPHE has not yet revealed the brand for this new development, but has said it will be a midscale lifestyle property.
