UK: PPHE Hotel Group A 13,000-square-metre mixed use development site near Tower Bridge has been acquired. It will feature a Radisson RED hotel.
This site was purchased via its European Hospitality Real Estate Fund. It has planning permission for a Radisson RED with a maximum of 182 bedrooms, a restaurant bar, gym, as well as 41,000 square feet in office space. It’s scheduled to open by 2029.
The £90 million investment, which includes a £17.5 million site acquisition cost, is expected to deliver a high single-digit unlevered annual yield at stabilisation.
PPHE said the development will prioritise sustainability, targeting a BREEAM ‘Excellent’ rating.
The fund has acquired a second property following the opening of the art’otel Rome Piazza Sallustio.
The fund will initially finance acquisition, and construction financing will be obtained after approval. The transaction will be completed in the next couple of months, pending customary conditions.
Greg Hegarty co-CEO PPHE Hotel Group, This site will be an excellent addition to our pipeline of development as we expand our portfolio and our presence on the London market. It is an exciting project which leverages our ‘Buy, Build, Operate’ business model and expertise, as well as our multi-brand and multi-market segment strategy. We are looking forward to bringing Radisson RED central London following the recent Radisson RED opens in Berlin, Belgrade and elsewhere.”
You can also find out more about the following: Radisson RED Property is a new addition to PPHE’s expanding London pipeline. This property complements the Park Plaza and Art’otel offerings at Hoxton, Battersea as well as Holmes Hotel in Marylebone.
Highlights:
• PPHE Hotel Group has acquired a 13,000 square metre site near Tower Bridge to develop a Radisson RED hotel and office space, scheduled to open in 2029.
• Plans include a 182-room hotel, with F&B, a gym, and 41,000 square feet of offices.
• The project aims for BREEAM ‘Excellent’ sustainability certification.
