A Hoxton hotel acquisition has been made for a considerable £35m
PPHE Hotel Group has announced that one of its wholly owned subsidiaries has exchanged contracts to buy from its joint venture partner for 50 per cent interest in the groups’ company, Aspirations Limited.
PPHE owns, leases, develops and operates upper scale lifestyle hotels, mainly in Europe. A consideration of £35m has been made - subject to working capital adjustments to be done on completion.
Aspirations Limited owns sites located near Old Street, Rivington Street, Great Eastern Street and Bath Place on which it plans to develop art’otel’s London Hoxton.
Boris Ivesha, president and chief executive officer of PPHE Hotel Group, commented: “We are excited about this latest transaction which is part of realising the next phase of growth for our group.
“Construction of art’otel London Hoxton is now expected to commence in the second quarter of this year and this lifestyle hotel - located in one of London’s most exciting neighbourhoods - will complement our other art’otel already under construction, art’otel London Battersea Power Station.”
The company initially entered into this joint venture in 2008 by investing £11m for 50 per cent. This acquisition will be funded through cash resources.
The acquisition will enable the business to control the timetable for construction and hence construction of a mixed-use scheme consisting of the 318-room art’otel London Hoxton, office and commercial space and ancillaries are commencing.
The sale is expected to complete by the end of March 2018.