Hotel group PPHE said it has entered into an agreement with German bank Aareal to refinance its interests in eight hotels in the UK and the Netherlands.
Aareal will be providing two separate facilities, one for the Park Plaza Sherlock Holmes and Park Plaza Riverbank hotels in London, and the other for all six of PPHE's Dutch hotels which will be standalone facilities and which will refinance an existing single facility also provided by Aareal in December 2013.
The hotels in the Netherlands, valued at €280 mln, are the art'otel amsterdam, Park Plaza Victoria Amsterdam, Park Plaza Vondelpark, Amsterdam, Park Plaza Amsterdam Airport, Park Plaza Eindhoven and Park Plaza Utrecht.
The facility for the London hotels amounts to £150 mln (€190 mln), with a term of 10 years and a fixed interest rate of 3.248% per annum. The assets are valued at £254 mln, giving the facility a loan to value of nearly 60%.
The facility for the Dutch Hotels is for €182 mln with a term of 10 years and a fixed interest rate of 2.165% per annum.
Following this refinancing and the refinancing of Park Plaza Victoria London and Park Plaza Westminster Bridge London in April and May this year respectively, the group has extended the weighted average term to maturity of its debt facilities from 2.7 years to 9.3 years.
The new facilities will be used to repay £101 mln and €142 mln which together represent the entire amount outstanding of the 2013 Aareal facility and for general corporate purposes.
'This refinancing is part of our ongoing programme to refinance assets within the group with longer term facilities which enable us to continue to invest in refurbishment works at these hotels, as we remain focused on growing our market share and delivering customer service,' said Boris Ivesha, President & Chief Executive Officer.
