Park Plaza Hotels, the AIM-listed owner and operator of four-star hotels in Europe and the Middle East, said it has reached a joint venture agreement with Aldersgate Limited, the property vehicle of the Reuben Brothers, to develop a new apart-hotel under the 'art'otel' brand in London’s trendy Hoxton neighbourhood. Park Plaza said a planning application should be submitted later this year.
Park Plaza Hotels, the AIM-listed owner and operator of four-star hotels in Europe and the Middle East, said it has reached a joint venture agreement with Aldersgate Limited, the property vehicle of the Reuben Brothers, to develop a new apart-hotel under the 'art'otel' brand in London’s trendy Hoxton neighbourhood. Park Plaza said a planning application should be submitted later this year.
Under the terms of the agreement, Park Plaza will own 50% of the issued share capital in Aspirations Limited, the company that owns the site on which the hotel will be built. A wholly-owned Park Plaza subsidiary will pay cash consideration of about £3 mln (EUR 3.9 mln) for the stake and will also advance a loan of about £8 mln to Apex. That will be used towards the partial repayment of a loan made to Aspirations by Aldersgate. Park Plaza has entered into an agreement with Aspirations to operate and manage the hotel for an initial term of 20 years from the opening of the hotel.
The hotel will be the first Park Plaza has opened in London under the art’otel banner. The concept is one of individually themed boutique hotels paying homage to a well-known modern artist. Park Plaza is currently trying to identify the artist who would be responsible for the interior design and feel of this particular hotel. Park Plaza says the proposed hotel ‘will consist of several hundred rooms and suites’ along with restaurants and bars. The facilities are also expected to include an art gallery and two auditoriums that will show cult films and house a photography studio. As of 31 January 2008, the unaudited net asset value of aspirations was about £6.04 mln.
