PPHE Hotel Group has refinanced its loan with Aareal Bank for Park Plaza London Riverbank, extending the facility’s maturity from June 2026 to June 2030.
The agreement replaces the group’s existing 2016 loan and maintains secured, non-recourse financing against the hotel.
Under the revised terms, the £95.8m facility will continue to carry an all-in fixed interest rate of 3.248% until June 2026. After that date, 85% of the loan will move to a fully fixed rate of 5.72% until maturity, with a floating rate applied to the remaining portion. The loan will no longer be subject to amortisation, which the company said is expected to offset part of the higher interest costs.
Story Stream:
More on PPHE
The facility includes loan-to-value and debt service covenants and is secured against Aareal’s existing package, including a mortgage over the hotel.
Daniel Kos, chief financial officer, said the refinancing reflected the group’s ability to secure long-term funding on stable terms.
He said: “This extended facility continues our strong relationship with long-standing lender, Aareal Bank AG. The Group’s high-quality and stable asset base in key city-centre locations, such as Park Plaza Riverbank in London, enable us to secure long term financing on attractive rates.”
PPHE Hotel Group is an international hospitality real estate company, with a £2.2bn portfolio, valued as at December 2024 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.
