Sale of New York development site
Summary by AI BETAClose X
18 February 2026
PPHE HOTEL GROUP LIMITED
("PPHE Hotel Group", "PPHE" or the "Group")
Sale of New York development site
PPHE Hotel Group, the international hospitality real estate group which develops, owns and operates hotels and resorts, announces that its wholly-owned subsidiary has entered into an agreement for the sale of its development site located in Manhattan, New York.
This New York City site was acquired in 2019 with a view to developing the Group's first hotel in the US. However, subsequent to the acquisition, the regulatory landscape for ground-up hotel developments in New York significantly altered, which led the Group to conclude that a hotel development is not viable for this site. The Group has optimised the site to maximise its exit value through demolition works and the acquisition of air rights.
The transaction has been structured as a sale of the freehold of the site to a US real estate developer for a purchase price of $33.5 million. There are no due diligence conditions to consummate the sale, and it is expected that the disposal will close in the coming months. The sale proceeds will be used to repay the associated debt of $8.3 million, with the balance of funds to be deployed in accordance with the Group's capital allocation strategy.
Greg Hegarty, Co-CEO of PPHE, commented:
"We are pleased to exit this longstanding development site near Hudson Yards in New York, which demonstrates the Group's focus on and the proactive pursuit of its strategy. The site was acquired in 2019 with the intention of developing a hotel and condominiums. However, with the significant changes to the regulatory landscape following acquisition, we believe this disposal presents an opportunity for us to release capital, which can be redeployed into our core geographic regions."
Enquiries
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PPHE Hotel Group Limited
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Tel: +31 (0)20 717 8600 |
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Daniel Kos, Chief Financial Officer & Executive Director Inbar Zilberman, Chief Corporate & Legal Officer Robert Henke, Executive Vice President Commercial Affairs
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Hudson Sandler Wendy Baker / Nick Moore / India Laidlaw |
Tel: +44 (0)20 7796 4133 |
Notes to Editors
PPHE Hotel Group (LSE: PPH) is an international hospitality real estate company, with a £2.2 billion portfolio*, valued as at December 2024 by Savills and Zagreb nekretnine Ltd (ZANE), of primarily prime freehold and long leasehold assets in Europe.
Through its subsidiaries, jointly controlled entities and associates it owns, co-owns, develops, leases, operates and franchises1 hospitality real estate. Its portfolio includes full-service upscale, upper upscale and lifestyle hotels in major gateway cities and regional centres, as well as hotel, resort and campsite properties in select resort destinations. The Group's strategy is to grow its portfolio of core upper upscale city centre hotels, leisure and outdoor hospitality and hospitality management platform.
PPHE Hotel Group benefits from having an exclusive and perpetual licence from the Radisson Hotel Group, one of the world's largest hotel groups, to develop and operate Park Plaza® branded hotels and resorts in Europe, the Middle East and Africa. In addition, PPHE Hotel Group wholly owns, and operates under, the art'otel® brand and its Croatian subsidiary owns, and operates under, the Arena Hotels & Apartments® and Arena Campsites® brands.
PPHE Hotel Group is a Guernsey registered company with shares listed on the London Stock Exchange. PPHE Hotel Group also holds a controlling ownership interest in Arena Hospitality Group ('AHG'), whose shares are listed on the Prime market of the Zagreb Stock Exchange.
*In the event of a firm offer being announced for the Company, asset valuation reports in accordance with Rule 29 of the Code will be published in due course and by no later than publication of the scheme document or offer document
Company websites: PPHE Hotel Group | Arena Hospitality Group
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