PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, is pleased to announce that it has received planning consent from Westminster City Council to develop a new hotel within the Park Plaza Victoria London property.
PPHE has a strong track record of creating shareholder value by growing the Group through new acquisitions and developments, as well as through repositioning programmes to enhance assets.
At Park Plaza Victoria London, the Group will convert 6,500 square metres of predominantly subterranean space to a new 179-guest room hotel with a separate and dedicated entrance. The current 299-key Park Plaza Victoria London hotel will continue to operate standalone in its current form.
Through this forward-thinking approach of converting a subterranean space, the Group will be tapping into a growing segment of the market, which has seen particular traction in London. On completion, the Group will operate a dual-branded hotel consisting of the Upper Upscale Park Plaza Victoria London and a Midscale Lifestyle product for which the brand is yet to be announced.
Given that development will be utilising the existing structure, and land does not need to be acquired, the Group expects to significantly increase the asset valuation and yield upon completion. Detailed design, construction and funding plans are currently being prepared and further updates will be announced in due course.
Boris Ivesha, President & Chief Executive Officer, PPHE Hotel Group said:
“This is an exciting new project utilising an existing asset and operations in a sought-after location to maximum effect. Situated in the heart of the city, this 179-room property will further enhance our London portfolio, broaden our accommodation proposition, enabling us to tap into a new guest demographic, whilst maximising returns. The strategy here is consistent with the Group’s longstanding approach to building long-term shareholder value through the measured use of its balance sheet and tactical capital investment.”
