The local Westminster City Council greenlit a project within the current Park Plaza Victoria London estate.
PPHE will convert 6,500 sq m of predominantly subterranean space into a new 179-guestroom hotel with a separate and dedicated entrance.
The current 299-key Park Plaza Victoria London hotel will continue to operate standalone in its current form.
Through this atypical approach of converting a subterranean space, the group will be tapping into a growing segment of the market, which has seen particular traction in London.
On completion of the project, PPHE will operate a dual-branded hotel consisting of the upper upscale Park Plaza Victoria London and a midscale lifestyle product for which the brand is yet to be announced.
Given that development will be utilising the existing structure, and land does not need to be acquired, the group expects to significantly increase the asset valuation and yield upon completion.
Detailed design, construction and funding plans are currently being prepared.
Utilising existing assets
Boris Ivesha, president and CEO, PPHE Hotel Group said: “This is an exciting new project utilising an existing asset and operations in a sought-after location to maximum effect. Situated in the heart of the city, this 179-room property will further enhance our London portfolio, broaden our accommodation proposition, enabling us to tap into a new guest demographic, whilst maximising returns.
“The strategy here is consistent with the group’s longstanding approach to building long-term shareholder value through the measured use of its balance sheet and tactical capital investment.”
PPHE has a track record of creating shareholder value by growing the group through new acquisitions and developments, as well as through repositioning programmes to enhance assets.