Italy: PPHE Hotel Group has purchased the Londra & Cargill Hotel in Rome, marking the group’s entry into the Italian market.
The acquisition has been funded from PPHE’s excess cash position, which will be partly refinanced with external bank debt in due course. The transaction was structured as a share sale of the company which owns the freehold hotel and its operations for a purchase price of €34.5 million (subject to working capital and customary price adjustments). PPHE paid €33.2 million on completion of the transaction.
It constituted a Class 2 transaction under the UK Financial Conduct Authority’s Listing Rules, meaning it did not require PPHE shareholders’ approval.
Boris Ivesha, president and CEO of PPHE Hotel Group, said: “We are thrilled to acquire this hotel in the centre of Rome, which will mark our entry into the Italian market and adds another key capital city to our growing portfolio of hotels. Our plans to reposition the property to an upper upscale lifestyle hotel will further bolster our development pipeline which already features iconic, premium projects across cities including art’otel London Battersea Power Station and art’otel London Hoxton. This latest acquisition further supports the group’s long term growth strategy as it continues to build its presence in new markets.’’
The Londra & Cargill Hotel dates back to the 1900’s and is located close to the Via Vittorio Veneto. The hotel currently offers 101 rooms and suites, a restaurant, bar, meeting facilities and private parking.
Operations will continue whilst PPHE finalises plants to reposition the property to an upper upscale lifestyle hotel. It is expected to relaunch early 2023.
Last month, PPHE revealed plans to acquire the FRANZ Ferdinand Mountain Resort in Nassfeld in Austria for £12.7 million.
