PPHE Hotel sells NYC development site for $33m

(Sharecast News) - Hotel and resorts group PPHE Hotel has sold a longstanding development site in Manhattan to an unnamed US real estate developer for $33.5m. The company, formerly known as Park Plaza Hotels Europe, first purchased the asset near Hudson Yards in 2019 with a view to developing its first hotel in the US, but decided against it after the regulatory landscape for ground-up hotel developments in New York changed.

In the interim, to maximise its exit value, PPHE has prepped the site for sale through demolition works and the acquisition of air rights.

Sales proceeds will be used to repay the associated debt of $8.3m, with the balance to be redeployed into core operations, the company said.

"We are pleased to exit this longstanding development site near Hudson Yards in New York, which demonstrates the Group's focus on and the proactive pursuit of its strategy," said PPHE's co-chief executive Greg Hegarty.

"With the significant changes to the regulatory landscape following acquisition, we believe this disposal presents an opportunity for us to release capital, which can be redeployed into our core geographic regions."

With no due diligence conditions to meet for the sale, the disposal is expected to close in the coming months.