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UK: PPHE Hotel Group has acquired a 13,000 square metre, mixed-use development site near Tower Bridge, set to include a Radisson RED lifestyle hotel.
Acquired via its European Hospitality Real Estate Fund, the site has planning permission and will house a Radisson RED hotel with a minimum of 182 rooms, a restaurant, bar, gym, and 41,000 square feet of office space. It is set to open in 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.
It marks the fund’s second acquisition following the launch of art’otel Rome Piazza Sallustio.
The fund will finance the acquisition initially, with construction finance to be secured post-approval. The transaction is expected to complete in the coming months, subject to customary conditions.
Greg Hegarty, co-CEO of PPHE Hotel Group, said: “This site will be a great addition to our development pipeline as we continue to extend our portfolio and presence in 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 look forward to bringing Radisson RED to central London, following our recent Radisson RED openings in Berlin and Belgrade.”
The Radisson RED property adds to PPHE’s growing London pipeline, complementing its Park Plaza and art’otel offerings in Hoxton and Battersea, and 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.
