CREATING SHAREHOLDER VALUE: PARK PLAZA LONDON WATERLOO
Park Plaza London Waterloo is an excellent example of PPHE’s ability to adapt its model and seize an opportunity to develop a high-quality hotel and create value for shareholders.
In 2013, Hercules House, a redundant office building close to Waterloo station, was acquired. Planning permission was granted in 2014 and construction commenced to extend the footprint and develop the property into a world class hotel with nearly 500 rooms.
Construction was completed in June 2017 and the hotel opened to guests. The total cost of investment in the property (including acquisition of the site) was £125m.
In July 2017, the hotel was sold for £161.5m and leased back for 199-years, unlocking over £36m in cash whilst securing operating income and maintaining control of operation of the hotel for many years to come.