Main Photo: The new Art’otel Hoxton – imagined
Date: April 2020
Location: Hoxton, London, UK
Name: Art’otel London Hoxton – opening 2022
No. of Keys: 343
Owner: The project started as JV in 2008 with Aldersgate Investments (the Reuben brothers), which PPHE took 100% control in March 2018.
Funder: PPHE Hotel Group has secured the £180m funding required for the development of Art’otel London Hoxton in the capital.
It has announced that it has entered into a “syndicated facility agreement” with Bank Hapoalim B.M. to make up to £180m available to build the 343-bedroom hotel on Old Street.
The facility has a floating interest rate, reflecting a 4.19% interest rate as at Wednesday. This reduces after two consecutive quarters once the hotel has been practically completed.
In addition, the facility “contains customary debt service cover and loan to value financial covenant” which apply after practical completion of the hotel.
The hotel will be over five floors and include office space, a gym, swimming pool and wellness facilities and an art gallery space.
The total project costs remaining for the hotel are estimated to be £200m, and PPHE said that having already committed equity it does not expect a material outflow of cash until 2022.
PPHE president and chief executive Boris Ivesha said: “We are pleased to have secured funding to develop Art’otel London Hoxton with Bank Hapoalim B.M., which has been a long-standing partner of the group, funding several of our other key properties, including Park Plaza Westminster Bridge London which opened in 2010.”
THPT Comment: Good to see evidence that money is still around for hotel investment, in London.
First Seen: Morningstar
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