IN BRIEF: PPHE Hotel gives up US expansion plan as sells New York site
PPHE Hotel Group Ltd - Guernsey-registered operator of Park Plaza and art’otel hotels - Agrees to sell the building site on the west side of Manhattan that it had hoped would be home to its first hotel in the US. PPHE sells the freehold of the New York site, near Hudson Yards, to an unnamed ‘US real estate developer’ for $33.5 million. No due diligence is required for the deal, so PPHE hopes to close it in ‘coming months’. Of the sale proceeds, $8.3 million will be used to repay debt connected to the site, with the remainder redeployed into PPHE’s ‘core geographic regions’ in Europe.
The site was purchased in 2019 for $42 million in a 50-50 joint venture with real estate developer, Largo 542 West 29th Street Partners LLC with the plan to build an art’otel there. However, since then, ‘the regulatory landscape for ground-up hotel developments in New York significantly altered, which led the group to conclude that a hotel development is not viable for this site,’ PPHE says on Wednesday. It notes that it maximised the site’s exit value by conducting demolition works and acquiring air rights.
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