PPHE Hotel Group Limited (LON:PPH), the international hospitality real estate group which develops, owns and operates hotels and resorts, has announced that it has entered into an agreement to refinance Park Plaza Victoria London.
The new £88 million facility has been arranged by Santander UK plc and ABN AMRO Bank N.V and is part of an ongoing programme for the long-term refinancing of certain of the Group’s assets following the successful refinancing of Park Plaza London Riverbank in November 2025. This new facility for Park Plaza Victoria London will replace the existing facility with Barings LLC, which matures in Q1 2026.
The new facility is for a term of 5 years and will bear a floating interest rate, of which 90 per cent is hedged at an all-in rate of 3.9%. This compares with an all-in fixed rate of 3.42% that applied under the existing facility.
The new facility will be secured, inter alia, by a first legal charge over the Hotel and pledges over the company which owns the freehold of the hotel and its related operating subsidiaries.
The new facility agreement is subject to certain conditions precedent being fulfilled, and funding is expected to take place on 18 December 2025.
The facility agreement includes financial covenants based on loan to value and debt service common with this type of facility.
Daniel Kos, Chief Financial Officer of PPHE Hotel Group, commented:
“We are pleased to announce a second major refinancing this quarter, underlining the strength and breadth of our banking partnerships. Park Plaza Victoria London was one of the Group’s first London hotels and has been a strong contributor to the Group since opening in 2001. The hotel is currently undergoing a capex investment programme, which will see all guest rooms upgraded in the first half of 2026. The new facility supports our overall ambition of driving value for our shareholders and delivering an outstanding guest experience.”
