£180m funding secured for development of new London hotel

An international real estate group has announced that it has secured funding for the development of a new hotel in London.

PPHE Hotel Group reported today that it has entered into a syndicated facility agreement arranged by Bank Hapoalim BM for up to £180m for the project.

The hotel, which will be called ‘art’otel london hoxton’, will be on a site by Great Eastern Street and Bath Place.

It will house nearly 350 rooms, as well as five floors of office space.

The company has said that the project costs remaining for completion of the hotel are approximately £200m.

Boris Ivesha, president and CEO of PPHE, commented: “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.

“The development, which is in one of London’s most exciting neighbourhoods, will include a new 27 storey building to accommodate 343 hotel rooms and suites, five floors of office space, a gym, swimming pool and wellness facilities and an art gallery space.

“We believe the project has the potential to deliver attractive risk-adjusted returns for shareholders whilst further expanding our art’otel brand.”