PPHE Hotel Group has announced the acquisition of a 13,000-square-metre mixed-use development located near the City of London and Tower Bridge. The company intends to transform the site into a Radisson Red lifestyle hotel.
Scheduled to open in 2029, the hotel will be the first Radisson Red in central London. It will feature at least 182 guest rooms, along with a restaurant, bar, and gym. The development also includes 41,000 square feet of office space, for which planning permission has already been granted.
The group plans to invest approximately £90 million in the project, which covers the site acquisition cost of £17.5 million.
The initial purchase will be financed by the European Hospitality Real Estate Fund, with PPHE arranging construction financing for the remainder of the development.
This deal also represents PPHE’s first entry into the City of London. The previous year, the group made its first expansion eastward by opening the Art’otel London Hoxton in Old Street.
Greg Hegarty, co-chief executive of PPHE Hotel Group, said: “This site will be a great addition to our development pipeline as we continue to extend our portfolio and presence in the London market. It is an exciting project, which leverages our ‘Buy, Build, Operate’ business model and expertise, as well as our multi-brand and multi-market segment strategy. We look forward to bringing Radisson Red to central London, following our recent Radisson Red openings in Berlin and Belgrade.”
The Radisson Red brand debuted in 2015, making its UK entrance with a location in Glasgow. Since then, it has grown its portfolio to feature key properties such as Radisson Red Liverpool, Radisson Red London Heathrow, and the upcoming Radisson Red London Twickenham Stadium.
PPHE Hotel Group is a global hospitality real estate company that develops, owns, and manages hotels.