PPHE completes £17.5m City of London site acquisition

(Sharecast News) - PPHE Hotel Group said on Friday that it has completed the £17.5m acquisition of a prime development site near the City of London, which would house its first select-service hotel in the capital. The FTSE 250 company said the 13,000 square metre mixed-use site, located close to Tower Bridge, already had planning permission.

It said the project, due to open in 2029, would feature a Radisson RED lifestyle hotel with at least 182 rooms, alongside a restaurant, bar, gym and 41,000 square feet of office space.

PPHE said it expected total investment in the development to be around £90m, including the purchase price, with an unlevered annual yield in the high single digits once stabilised.

The scheme would also target a BREEAM "Excellent" environmental accreditation.

PPHE said the acquisition was the second by its European Hospitality Fund, following the opening of the five-star art'otel Rome Piazza Sallustio earlier in the year.

At 1021 BST, shares in PPHE Hotel Group were up 1.48% at 1,374p.

Reporting by Josh White for Sharecast.com.