PPHE subsidiary secures €12.6m development loan

Arena Hospitality Group has agreed a loan of €12.6 million with Croatian bank Erste & Steiermärkische for the development of its Art’otel in Zagreb.

Development of the upper upscale lifestyle hotel started in autumn 2021 and involves the conversion of a building in the heart of the city.

Once opened, this 118-room hotel will include a restaurant and bar, wellness and spa facilities, fitness centre, event space and parking. The hotel, which will also feature a roof top swimming pool and bar, is expected to open in December 2022.

The loan is due in 2034 and carries a fixed interest rate of 2.2%.

PPHE Hotel Group has a controlling shareholding in the Croatia-based company.

PPHE has a £1.8 billion portfolio of primarily freehold and long leasehold assets in Europe. It has an having an exclusive and perpetual licence from the Radisson Hotel Group to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa.