PPHE Hotel Group has secured €350 mln worth of new loans from German lender Aareal Bank to refinance eight hotels in London and Amsterdam.
PPHE Hotel Group has secured €350 mln worth of new loans from German lender Aareal Bank to refinance eight hotels in London and Amsterdam.
PPHE Hotel Group has refinanced three of the group's four owned London hotels - Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes - and five Dutch hotels which it operates and owns -Park Plaza Amsterdam Airport, Park Plaza Victoria Amsterdam, Park Plaza Vondelpark, Amsterdam, Park Plaza Eindhoven, and Park Plaza Utrecht.
The hotels were previously financed by three separate facilities provided by Aareal with various maturity dates between December 2013 and September 2017.
The new loan, which is for five years, comprises a sterling tranche of up to £167.6 mln and a Euro tranche of up to €153.2 mln. The sterling tranche includes up to £7.0 mln for capital expenditure at the London Hotels and the Euro tranche includes up to €7.5 mln for capital expenditure at the Dutch hotels and €24.0 mln to refinance the existing development facility for the recently opened art'otel amsterdam, which matures in Q1 2014.
Interest on the new sterling facility has been partially hedged at a fixed rate of 5.665% per annum.
A total of €121.7 mln, which was drawn down from the €153.2 mln of the Euro tranche, has been hedged at a fixed rate of 4.599% per annum.
Clifford Chance has advised Aareal Bank AG on the refinancing.
