Refinancing of Park Plaza London Riverbank

PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, is pleased to announce that it has entered into an agreement to refinance its existing loan with Aareal Bank AG ("Aareal'') in relation to Park Plaza London Riverbank (the "Hotel"). This refinancing extends the existing 2016 facility with Aareal (the "Existing Facility") from its original maturity date of June 2026, with a new maturity date in June 2030.

Under the new terms, the £95.8m facility will continue to attract an all-in fixed interest rate of 3.248% until the original maturity date of June 2026. Following this, 85 per cent of the loan will bear a fully fixed interest rate of 5.72% until maturity, with a competitive floating interest rate applying to the remainder of the loan. This compares with an all-in fixed interest rate of 3.248% that applied under the terms of the Existing Facility. Additionally, under the new terms, the loan will no longer be subject to amortisation which is expected to partially offset the impact of the increased interest on cash flow.

The facility agreement includes financial covenants based on loan to value and debt service common with this type of facility.

The new facility is non-recourse and will be secured by Aareal's existing security package, including a mortgage over the Hotel.

Daniel Kos, Chief Financial Officer of the Company, commented:

"This extended facility continues our strong relationship with long-standing lender, Aareal Bank AG. The Group's high-quality and stable asset base in key city-centre locations, such as Park Plaza Riverbank in London, enable us to secure long term financing on attractive rates"